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Emergency Fund
An emergency fund is money kept aside for unexpected expenses or income disruption.
A household may keep three to six months of expenses in liquid instruments before taking investment risk.
Personal finance education has long treated emergency savings as the base of a financial plan.
Definition
An emergency fund is money kept aside for unexpected expenses or income disruption.
Case Study
A household may keep three to six months of expenses in liquid instruments before taking investment risk.
Historical Reference
Personal finance education has long treated emergency savings as the base of a financial plan.
Illustration
