Emergency fund

Emergency fund

A reserve of cash kept available to meet the costs of any unexpected financial emergencies.

Emergency Fund

An account where an individual deposits funds to use in an emergency. That is, if one finds himself laid off and unable to work due to a medical emergency (or, otherwise, in a financially difficult position) the emergency fund helps prevent destitution while one finds another job or recuperates. Many analysts recommend keeping three to six months of living expenses in an emergency fund, while others recommend setting aside a year's worth of expenses. See also: Rainy day fund, Equalization Reserve.

Emergency fund.

An emergency fund is designed to provide financial back-up for unexpected expenses or for a period when you aren't working and need income.

To create an emergency fund, you generally accumulate three to six months' worth of living expenses in a secure, liquid account so that the money is available if you need it.

It's a good idea to keep your emergency fund separate from other savings or investment accounts and replenish it if you withdraw. But you don't have to limit yourself to low-interest savings accounts, and might consider other liquid accounts, such as money market funds, that may pay higher interest.

If you're single or have sole responsibility for one or more dependents, you may want to consider an even bigger emergency fund, perhaps large enough to cover a year's worth of ordinary expenses.

References in periodicals archive ?
Life insurance-life risks are part of life and sometimes those risks are beyond emergency funds and life insurance becomes crucial.
Maybe, an emergency fund that is worth around six to 12 months of the monthly lifestyle expenses can be applied.
Resist the urge of dipping into your emergency fund once it begins to grow.
We want Scotland to be a good global citizen and our Humanitarian Emergency Fund aims to provide emergency life-saving aid to those in most need.
The Student Emergency Fund provides grants to students in need, and all the funds are donated just for that reason," says Kirk Yats, director of scholarships and financial aid.
Of course many of us find it difficult to make ends meet even when we are earning money and so putting together an emergency fund is not easy.
aspx) emergency fund , so too do seniors need that same sort of cushion, if not an even greater one.
The Labor Emergency Fund provides financial aid to Egyptian workers whose companies either ended their activities in the local market or stopped paying salaries and wages to employees.
Secondly, working as a team to save up your baby emergency fund achieves so much more than a bank account with a sum of money in it.
When it first started, the Sweet Emergency Fund was available to help with many of the costs accrued by people diagnosed with HIV/AIDS.
Recognizing the need to replenish the emergency fund, the U.

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