Emergency fund is very important to have. It is the very first thing that one should have if you want some peace of mind. It is something that you can use when emergencies come like when somebody in the family gets sick, urgent house repairs and other emergencies that will crop up in the future.
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We are supposed to have the 35% of our target emergency fund but we need to use it when we transfer to our home soon. So the emergency fund that we have right now will be dried up.
Why Emergency Fund is Very Important?
- To Avoid Debt. I really hate debt and I avoid it like a plague or disease. Debt is a financial burden to anyone. It robs you off to enjoy the future.
- To have some sort of peace of mind. Isn't it great to think that when there are financial problems in the future, you have something to get from? It somehow gives you peace of mind knowing it's readily available when you need it most.