Emergency fund is crucial for financial stability from "summary" of The Total Money Makeover: Classic Edition by Dave Ramsey
An emergency fund is like a financial safety net that can protect you from unexpected expenses that may come your way. It's like having a buffer between you and financial disaster. Without an emergency fund, you may find yourself in a precarious situation when life throws you a curveball. Imagine not having enough money to cover a sudden medical bill, car repair, or home maintenance cost. You would likely have to resort to borrowing money, using credit cards, or even worse, tapping into your retirement savings. This can put you in a cycle of debt and financial stress that is hard to break free from. Having an emergency fund gives you peace of mind and financial security. It allows you to handle unexpected expenses without derailing your financial goals or going into debt. Knowing that you hav...
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