It’s been quite some time since the last time I talked about something that is related to personal finance so I think it’s about appropriate to revisit them in the early days of the year.

The topic related is about emergency funds and it is right at the heart and foundation of personal finance.

Often, we hear about the internet or professional consultants who preach about how importance it is to keep at least 6 months of our living expenses as emergency funds before we can start investing and growing the rest of our funds.

In this post, I am going to challenge that rule of thumb that it’s not always necessary and propose that we create more awareness instead about our whole situation.

What is Emergency Fund?


First, we need to comprehend the definition of an emergency fund.

An emergency fund, in my definition, is cash that we’ve stashed …