When I talk to my clients, I always promote to them to set aside an EMERGENCY FUND. I remind them to have enough emergency fund depending on what stage of their life they are and current situation. Meaning, setting aside money for your emergency fund is a case to case basis for me.
So, what is emergency fund and why does it really matter?
Let’s define Emergency Fund first!
EMERGENCY FUND IS:
It is a money set aside in a very liquid storage. Meaning, it is stored in an accessible storage or can be easily withdrawn. Why should it be placed in a very liquid financial instrument? Because, it is a FINANCIAL SAFETY NET for LIFE’S LITTLE SURPRISES!
These Life’s Little Surprises are the following, but not limited to:
Learn how much your emergency fund should be! Effects of over and under-funding your emergency funds.
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