Emergency fund

(redirected from Emergency Funds)

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 ?
A nursery school for the children of MG Rover employees has been granted emergency funds to prevent its closure in the wake of the manufacturer's collapse.
9 million in emergency funds, the police agency would continue to staff 60 positions in labs that provide DNA identification, firearms analysis and other forensic work for state and local law enforcement agencies.
The Department of Agriculture snatched a 9 percent increase in R&D support--some of it in emergency funds for combating terrorist threats to the food supply.
An emergency funds is a stash of money that is easily accessible in case of "emergency," such as a sudden illness, a layoff, or serious property damage.
Finance Minister Domingo Cavallo asked the International Monetary Fund for emergency funds and has induced the Argentine Congress to pass a set of laws to help reduce the 1995 deficit.
in their 1991 Technical Instruction Program, the Service published the following guidelines on emergency funds and disaster relief organizations.
Should you need to access your emergency funds, set up a repayment schedule by budgeting for the amount you've withdrawn.
In total, between employee and employer contributions, the team has accumulated $22,000 in their personal emergency funds this year, which is pretty remarkable.
however, some residents in the UAE say that they are unable to build emergency funds because their monthly earnings are barely enough to cover the cost of living.
recommended the S2 billion in emergency funds in Its draft bill in July.
Middlebrook cited the $1 billion in federal emergency funds the Valley received after the Northridge Earthquake as evidence of the city's clout.
I'm looking at a money market account at my credit union for three to six months' worth of emergency funds," she says.

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