Emergency
You could not reasonably plan the timing or cost.
Saving & Spending
An emergency fund is accessible money set aside for unexpected expenses or income disruptions.
Money 101 • 07
Its job is to give you cash and time when something unexpected happens.
Accessible savings can help you avoid turning an emergency into expensive debt.
You could not reasonably plan the timing or cost.
It does not happen monthly, but you know it will come eventually.
Emergency money is less useful if reaching it requires a long delay, a large penalty or selling a volatile asset at a bad time.
Remember this
It gives you a buffer between an unexpected problem and the need to borrow immediately.