Building an emergency fund is a crucial part of financial planning. With the help of budgeting apps, it has become easier to save money and build an emergency fund. This article will discuss the characteristics of an emergency fund and general steps to building an emergency fund using budgeting apps.
An emergency fund is a pool of money that you set aside to cover unexpected expenses or income loss. It acts as a financial safety net and can help one avoid debt or financial hardship in case of an emergency. The following traits describe an emergency fund:
YNAB (You Need A Budget)
This story originally appeared on Investing