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Build an emergency fund for unexpected expenses from "summary" of I Will Teach You To Be Rich by Janny Patri
An emergency fund is your financial safety net, designed to protect you from unexpected expenses that can derail your financial progress. These expenses could be anything from a medical emergency to a car repair or a sudden job loss. By setting aside money specifically for emergencies, you can avoid going into debt or dipping into your savings meant for other goals. The first step in building an emergency fund is to determine how much you need to save. A good rule of thumb is to aim for three to six months' worth of living expenses. This amount will vary depending on your individual circumstances, such as your monthly expenses, income stability, and any dependents you may have. Once you have determined your target amount, the next step is to automate your savings. Set up a separate savings account specifi...
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