What is an Emergency Fund?
Do you know what an emergency fund is? If not, make sure to read this entire blog post.
An emergency fund is dinero you have set aside for unexpected expenses. It’s súper importante that you have an emergency fund because…
It’s not a matter of if an emergency is going to happen, but rather, when it is going to happen
Having one will prevent you from going into debt
It will give you financial peace of mind and that is priceless
So you may be wondering, “what counts as an emergency?” That is a great pregunta! An emergency is an unexpected event that needs immediate attention and resources such as…
A loss of job
Medical or dental emergencies
Car troubles
Before you take money out of your emergency fund, however, stop and ask yourself these questions:
Is it unexpected
Is it urgent?
Is it necessary?
If you responded “yes” to all of these questions, go ahead and use your emergency fund.
Here’s to having more financial security and peace of mind by building an emergency fund!