How to Build a Emergency Fund.

Emergency Fund 101

A Thread 👇

Inspiration -- @FI_InvestIndia

What is an emergency fund?

An emergency fund is a bank account with money set aside to pay for large, unexpected expenses, such as:

- Unforeseen medical expenses.

- Home-appliance repair or replacement.

- Major car fixes.

- Unemployment.

Importance of an emergency fund

Life is full of unexpected situations – good and bad.

Hence, apart from other things, you need to be prepared for it financially.

While you can plan for some foreseeable expenses, an emergency fund can help you manage all unplanned expenses efficiently.

The current pandemic is an example of one such unplanned expense.

People with an emergency fund are in a much better position to manage this lockdown than those who don’t.