Life is full of surprises, both good and bad. Having an emergency fund is like having a financial safety net that can catch you when unexpected expenses arise. This fund is specifically for unforeseen events like job loss, medical emergencies, or urgent home/car repairs. How much should you aim for? A common recommendation is to save 3-6 months' worth of living expenses. Start small if you need to – even a few hundred dollars can make a difference. Automating transfers from your checking to a separate savings account is a great way to build it consistently. Make sure this money is easily accessible, but not so easy that you're tempted to dip into it for non-emergencies. Your emergency fund is a powerful tool for reducing financial stress and maintaining your financial well-being.
