In my previous posts, I have written about the need for Opportunity Fund, which is meant for investing purposes. In life, we should also consider building up an Emergency Fund, which is a reasonable amount of money set aside for rainy days. Many people live their lives as if nothing bad will ever happen to them. Its as if buying a car and not buying an insurance, expecting no incidents or accidents. Such a thinking is so unrealistic as we know that life has its share of downturns. Without an emergency fund, any setback might potentially spiral into serious financial problem for you and your family.

An Emergency Fund is considered more important than Opportunity Fund as the former is a safety net and is the shock absorber of life. Without Emergency Fund as your cash cushion, you are taking a gamble. I believe we should build up an emergency ......