How an emergency fund actually works
5 min read • 28 Apr 2024
Three to six months of expenses, kept liquid. Why it comes before investing, and where to park it.
An emergency fund is money you can reach in a day, set aside so a job loss or medical bill never forces you to sell investments at the wrong time. Build it before you invest aggressively.
Key takeaway
An emergency fund isn't an investment.It's what keeps your investments untouched.