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 ?
Our long-term goals, such as retirement savings and having an emergency fund, should always take priority over anything that is presented with a bow and purchased during a Black Friday sale.
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.
So rebuild your emergency fund before getting back to clearing your debt.
By taKing control of your finances, and if possible putting aside some money for a 'rainy day', you can protect yourself should anything unfortunate happen, and have peace of mind that you have your emergency fund to dig in to, in order to help cover the costs of any unforeseen circumstances.
THE latest NS&I Quarterly Savings Survey showed that over one in four Britons with an emergency fund have broken into it when they didn't have to.
This is a novel way for owners to get involved and support the Jockeys Emergency Fund, who do such great work.
Liquidity, or the ability to turn into cash, differentiates an emergency fund from other investments.
I had no emergency fund left because I spent it all on living expenses," says Perry.
Sarah Lord, wealth planning director at Killik & Co (Middle East and Asia), would not recommend investing the emergency fund at all even though interest rates on bank deposits are very low.
We will launch an emergency fund C* we will do this fund to [collect] contributions from governments, the private sector, citizens and philanthropists," Bokova said, adding that she would only tap debt markets as a last resort.
for AIDS Project Worcester's latest drag show to benefit the Central Massachusetts Transgender Emergency Fund, and with the likes of local drag legend Lady Sabrina hosting, 2007 Miss Gay Worcester winner Christine, and a number of other local drag artists performing, and the endlessly eclectic DJ Patrick Allen spinning tunes, it's hard to imagine a more liberating mix to get the party started.

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