What is an Emergency Fund?

An emergency fund is a reserve of money set aside to cover unexpected expenses such as medical bills, car repairs, or sudden job loss. It acts as a financial safety net to protect you from debt and financial stress.

Why You Need an Emergency Fund

• Provides financial security during uncertain times.
• Prevents reliance on credit cards or loans.
• Helps maintain your budget without disruption.

How to Build Your Emergency Fund

Start by setting a realistic savings goal, typically covering 3 to 6 months of living expenses. Automate monthly transfers to a separate savings account and reduce unnecessary spending to boost your fund faster.