Emergency Fund is a financial safety net set aside to cover unexpected expenses or financial emergencies. It is a dedicated amount of money, typically kept in a savings account, that can be easily accessed when needed. The purpose of an emergency fund is to provide financial security and peace of mind during difficult times.

Importance of an Emergency Fund
An emergency fund is a key part of sound financial planning. Life is unpredictable, and having funds set aside can help you navigate unforeseen challenges without falling into debt or financial instability. An emergency fund can:

Cover unexpected medical expenses

Pay for urgent home repairs (like plumbing or roof issues)

Handle car repairs or accidents

Provide a cushion during job loss or income reduction

Help manage travel expenses for family emergencies

Prevent reliance on high-interest credit cards or loans


Building an emergency fund ensures that you can face life's uncertainties with confidence and resilience.