d financial planning is planning for the future, and whatever it may
What Is an Emergency Fund? One pointer to good financial planning is planning for th find e future, and whatever it may bring. Therefore, an essential component of a solid financial plan is an emergency fund. An emergency fund is used to cover a financial shortfall when an unexpected expense arises. Your emergency fund house can serve as a place to get the money you need when you need to sort something urgently important but you won’t have the financial capability except you d business ip into the funds. Emergency Fund must be reliable, it needs to hold guaranteed investments. Ideally, you won’t need to use the money in your emergency fund except in emergencies, and you will most likely maintain it for the long-term. You can divide emergency funds into two main categories: Short Term Emergency funds and Long Term Emergency funds Your short-term emergency fund is the place you go to when you have an immediate emergency. It should be in an accessible accoun