What is an Emergency Fund
An emergency fund is money set aside that is in a normal bank account that you can access quickly. For example, if your car breaks down, that is when you’ll use your emergency fund.
To be able to gain financial freedom, you should form the habit of creating an emergency fund.An emergency fund will eliminate the need for you to use debt for these life challenges. Click To Tweet
I bet you may be wondering how creating an emergency fund would help you ga=in an emergency fund?
Have you thought of uncertainties? At this stage, you may be saying, there would be nothing like uncertainties and even if there is, I can always use a credit card or loan.
That is exactly the mindset so many people I have had a chat with has. They all see a credit card and loans as a saving grace not knowing that there are precautions to that. If you keep depending on credit cards and loans to solve your financial problems, I will like to tell you now that you are not solving the problem but actually creating one for yourself and your children.
To gain financial freedom, you must learn to create an emergency fund so that you will not depend totally on credit cards or loans when uncertainties occur.
Watch the video below to learn how you can create an emergency fund.
There are many rules of thumb about how much you need in your emergency fund.
An emergency fund will eliminate the need for you to use debt for these life challenges.