An emergency fund is money set aside for unexpected situations such as medical bills, job loss, car repairs, or sudden expenses. It acts as a financial safety net and helps you avoid debt during difficult times.
Many people ignore emergency savings until a problem happens. However, life is unpredictable, and having emergency money can reduce stress and protect your financial future.
Financial experts often recommend saving at least 3 to 6 months of living expenses. This gives you enough support during emergencies without depending on loans or credit cards.