EMERGENCY FUND
WHAT IS A CONTINGENCY FUND & HOW TO CREATE IT?
Published By Livemint
| 31 Jan, 2023
Amid economic uncertainty, layoff season, and recession it gets important to make a contingency fund
A contingency fund is a fund that helps in meeting unforeseen emergencies
Having a contingency fund prepared beforehand saves from taking loan
Emergency fund prepares against uncertainty and emergencies
With such a fund, people are able to meet large finances, in case quitting a job or layoff
It also helps in reducing your financial stress
Market experts believe an ideal emergency fund to have 6 months to 2 years of income parked
Instead of keeping the amount ideal, invest in liquid assets
Make sure that these investments are easily accessible
Ensure timely review of your contingency fund