Emergency Funds 101: Here’s how to build one

& by& JPMorgan Chase Life is full of uncertainties, and unexpected financial challenges can arise anytime. Whether it’s a medical emergency, car repair, sudden job loss, or an unexpected home repair, having a financial safety net can provide peace of mind and security. This safety net is known as an emergency fund. In this article, we will define what an emergency fund is, discuss tactics for building one, estimate how long it takes to establish, and highlight how it can offer safety and security in times of need. What is an Emergency Fund? An emergency fund is a dedicated savings account for unforeseen expenses and emergencies. It provides a financial cushion to cover unexpected costs without resorting to credit cards or loans or depleting long-term savings accounts such as retirement funds. The primary purpose of an emergency fund is to provide financial stability during times of crisis, ensuring that you can maintain your basic needs and lifestyle without plunging into debt. Safety and Security in Times of Need An emergency fund offers invaluable safety and security when facing unexpected financial challenges. Some of the benefits include: Preventing Debt. With an adequate emergency fund, you won’t have to rely on credit...