Personal Finance

Emergency Fund

Definition

What is Emergency Fund?

Liquid savings reserved for unexpected expenses or income disruption.

Example in practice

Six months of essential expenses are kept in an accessible money market fund.

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Money set aside rather than spent, often for emergencies or future goals.

Total assets minus total liabilities.

The percentage of income saved or invested during a period.

Annual portfolio withdrawals divided by the portfolio's starting or current value.

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