Borrowing to cover unexpected bills can be the start of a financial hole that’s difficult to come out of. Having an emergency fund set aside for this unexpected circumstance can save you from creating a hole.
An emergency fund is money saved aside for unanticipated expenses in life, such as auto repairs, hospital visits, and even job loss. This money offers you the authority to pay over funds to cover huge and little surprises that may arise.
These economic challenges can happen to anyone but how would you be able to scale out of the situation if it came out of a reduction in salary or unemployment? Or an unexpected circumstance that happens out of the blue?
Even during the prosperous decade of the 1990s, many people failed to put away enough money for rainy days. In this article, we will look at the importance of emergency funds and how to build an emergency fund.
