Emergency fund is crucial for financial stability from "summary" of Let's Talk Money by Monika Halan
An emergency fund is like an umbrella in a rainstorm. You may not need it every day, but when the storm hits, you will be glad you have it. This fund is a crucial component of financial stability. It acts as a safety net when unexpected expenses or emergencies arise. Life is unpredictable, and emergencies can happen at any time. Whether it's a sudden medical expense, a car repair, or a job loss, having an emergency fund can provide you with the financial cushion you need to weather the storm. Without this fund, you may be forced to rely on credit cards or loans, which can lead to debt and financial stress. The rule of thumb is to have at least three to six months' worth of living expenses saved in your emergency fund. This amount can vary depending on your individual circumstances...
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