Finance & Banking

Emergency fund

ɪˈmɜːrdʒənsi fʌnd

noun

What does Emergency fund mean?

Savings covering 3-6 months of expenses.

Example sentence

"Build an emergency fund before investing."

American usage tip

Keep it liquid in a HYSA, not stocks.

Related Finance & Banking words

Diversify
To spread investments across different assets.
ITIN
Tax ID for those not eligible for an SSN.
Pay yourself first
Save automatically before spending.
Employer match
Free money your company adds to your 401(k).
Withholding
Tax taken from each paycheck automatically.
Zelle
A free instant bank-to-bank payment app.
Credit limit
The maximum you can borrow on a card.
IRA
Individual Retirement Account.

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