For many years, from the time I have heard about emergency funds. Then, I thought there was the only one which is a basic level of Emergency Fund. While talking to one of the other financial counselors, I realized there are actually many such levels.
Before we move directly to the levels of these funds. Let’s discuss a bit about how and why to build an emergency. As the name suggests, it’s a fund accumulated to help you fight against financial emergencies. A single unexpected situation like hospitalization or divorce can sweep your years of effort to maintain the credit score. And then, you would definitely agree with me if I say these emergencies are unavoidable and come in every individual’s life. Continue reading