Many people are not sure what is meant by Emergency fund so I wanted to explain what that is. An Emergency Fund can save you from many different life changing events and everyone should have one.
An Emergency fund is money that you have set aside for only emergencies. You don’t use it for anything other than serious emergencies and if you ever use it or even a portion of it, you repay everything you take from it as soon as possible.
The size of the fund depends on your family and the expenses your family has. No family has the same fund as no family has the same expenses or needs. When I was talking with a family about credit and building an emergency fund I would sit down with them and explain how this works. You setup an Emergency Fund to help you pay for unexpected emergencies. Those emergencies can include the loss of a job by either a one or two income family. Continue reading ‘Building an Emergency Fund’ »