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An emergency fund should be an essential component of every person’s financial plan. Unexpected tragedies can catch us by surprise, and an emergency fund can oftentimes be the difference between having a much-needed peace of mind and security or struggling to recover.

As the name suggests, an emergency fund is a separate account to be used only in the case of true emergencies such as medical bills or car and home repairs. While there isn’t a fixed amount to how much you should keep in your emergency fund but having between three to six months’ worth of your income is a good goal to have especially if you keep the most costly emergency, unemployment, in mind.


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An emergency fund should be an essential component of every person’s financial plan. Unexpected tragedies can catch us by surprise, and an emergency fund can oftentimes be the difference between having a much-needed peace of mind and security or struggling to recover.

As the name suggests, an emergency fund is a separate account to be used only in the case of true emergencies such as medical bills or car and home repairs. While there isn’t a fixed amount to how much you should keep in your emergency fund but having between three to six months’ worth of your income is a good goal to have especially if you keep the most costly emergency, unemployment, in mind.

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An emergency fund should be an essential component of every person’s financial plan. Unexpected tragedies can catch us by surprise, and an emergency fund can oftentimes be the difference between having a much-needed peace of mind and security or struggling to recover.

As the name suggests, an emergency fund is a separate account to be used only in the case of true emergencies such as medical bills or car and home repairs. While there isn’t a fixed amount to how much you should keep in your emergency fund but having between three to six months’ worth of your income is a good goal to have especially if you keep the most costly emergency, unemployment, in mind.

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