A crucial financial buffer for unexpected expenses.
An emergency fund is a savings account designated for unplanned expenses or financial emergencies, such as medical bills, car repairs, or job loss. Ideally, it should cover 3 to 6 months of living expenses. Building this fund provides financial security and peace of mind, allowing individuals to avoid debt accumulation during tough times. Prioritizing the establishment of an emergency fund is a foundational step in achieving financial freedom and stability.
It's not about how much money you make, but how much money you keep and how hard it works for you.
