An emergency fund is simply money you’ve set aside for life’s unexpected events. Our certified financial planner recommends you to save at least three months’ worth off expense to cover any unexpected emergency.
Emergency fund is one of the critical components of financial planning as your other mutual fund investments cannot count as an emergency fund as they are not always liquid and you might wash your entire investments in an emergency without reaping the power of compounding if you don’t have a separate emergency fund.
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