Having an emergency fund is important. No rational person would ever say an emergency fund is unimportant. Rationally, we know that bad things happen sometimes and we might need to have more liquidity at hand for such situations.
Whatever our persuasion might be in our journey as an investor, we cannot deny that cashflow is important. There could be times when cashflow is negatively affected and slows to a trickle or it could even dry up. That is when an emergency fund is drawn upon.
If our cashflow is a like a stream of water, an emergency fund is like a water tank that will dispense life giving water in the event of a drought.
The question of how big an emergency fund is enough is more difficult to answer because there isn’t any one size fits all amount, obviously. Then, is there any guideline which AK could offer? …