Money intentionally set aside for unexpected expenses or interruptions in income.
An emergency fund doesn’t make you rich.
It can help keep an emergency from forcing you to dismantle what you’re building.
Without accessible reserves, a major repair, job loss or unexpected expense may end up on high-interest debt or force you to sell investments at a bad time.
Your air conditioner dies and the repair is $4,000.
One woman pays from reserves.
Another puts $4,000 on a high-interest credit card.
Same emergency.
Very different financial aftermath.
An emergency fund isn’t only for job loss. A major home repair, insurance deductible, family emergency or unexpected travel expense can create the same need for accessible cash.
An emergency fund and an investment account generally serve different jobs. Money you may need immediately deserves different consideration from money intended for long-term growth.
Could I handle a significant unexpected expense without borrowing against my future?
Primarily Savings, but it helps protect Investments, Assets and Ownership from being liquidated during a crisis.
Liquidity • High-Yield Savings Account • Savings Account • Credit Card Interest