An emergency fund is a savings account specifically set aside for unexpected expenses or financial emergencies, such as medical bills, car repairs, or job loss. It acts as a financial safety net, providing peace of mind and stability during unforeseen circumstances. The goal of an emergency fund is to cover three to six months' worth of living expenses, allowing individuals to avoid going into debt when facing sudden costs.
congrats on reading the definition of Emergency Fund. now let's actually learn it.