Emergency Fund Essentials: Why, How Much & Where to Keep It
An emergency fund is your financial safety net during unexpected events like job loss, medical emergencies, or urgent repairs. Ideally, it should cover 3 to 6 months’ worth of living expenses, depending on your job stability and family needs. Start small and build consistently. Keep the fund in a liquid, low-risk place like a high-interest savings account or a fixed deposit with easy access. Avoid using it for non-emergencies. A well-planned emergency fund reduces financial stress and keeps your long-term goals on track, offering peace of mind when life throws surprises your way.