Have You Planned An Emergency Fund Yet? Here's What You Need To Know

An emergency fund always gives you a sense of assurance, and makes you believe that you can handle an extreme situation should it arise out of nowhere

You never know when a crisis will come knocking on your door. An accident, a health crisis, a job loss — just anything can happen and, therefore, it's a necessity to have an emergency fund. Considering the scale at which the novel coronavirus pandemic has caused problems, it's all the more important to have a buffer fund so that you don't add to the debt you might already owe. Additionally, an emergency fund always gives you a sense of assurance. Its presence makes you believe that you can handle an emergency should it arise out of nowhere. And if you haven't started it already, let us assure you that it's the easiest fund to manage with some patience and determination. How much is enough? The first question that comes to everyone's mind is how much should be enough for an emergency fund. Since it's a fund only to be used in an extreme situation, it can be somewhere between three to six months, at least. However, if you are a family person, you could think of preparing for at least a year.