The Emergency Fund, a bunch of money stacked away to cushion … well…. emergencies, is a common theme on personal finance blogs.
But when is an emergency an emergency?
- Sudden job loss
- Death or medical emergency of a family member
- Acts of nature
- Car accidents.
- Surprise tax bills.
- Delay in income.
- Sudden relocation
Some situations that don’t qualify as an emergency fit to dive into your emergency fund are:
- Vacation
- A buying “opportunity” in the stock market or real estate
- Out-of-town visitors.
- Mid-life crises
- Keeping up with the Joneses
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