Building an emergency fund is essential for financial security and peace of mind from "summary" of The Concise Psychology of Money by Morgan Housel
Emergency funds are like financial insurance policies that protect you from unexpected expenses or income disruptions. They act as a buffer between you and potential financial disasters, giving you the peace of mind to weather any storm that comes your way. Without an emergency fund, you may find yourself in a precarious situation when faced with sudden expenses like medical bills, car repairs, or job loss. Having an emergency fund in place is essential for financial security because it provides you with a safety net to fall back on during tough times. It allows you to cover your basic needs and expenses without having to rely on high-interest debt or dipping into your long-term savings. This can prevent you from going into debt or falling behind on bills, which can have long-lasting negative effects on your financial well-being. In times of uncertainty, such as during a pandemic...
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