Why Emergency Funds Are a Non‑Negotiable Asset

An emergency fund is the backbone of financial security. It protects individuals from unexpected expenses such as medical bills, job loss, or urgent repairs. Without this buffer, people often resort to high‑interest debt, which can spiral quickly. Financial planners typically recommend saving several months of essential expenses, but even a small cushion can make a meaningful difference. Keeping these funds in a liquid, low‑risk account ensures quick access when needed. Building an emergency fund is one of the simplest yet most powerful steps toward long‑term financial stability.

Source: https://www.consumerfinance.gov