Emergency Fund
Financial glossary definition
Definition
A savings buffer of 3-6 months of living expenses kept in a liquid, easily accessible account. This financial safety net prevents you from going into debt when unexpected expenses arise.
Try It Yourself
Savings Goal Calculator
Find out how much you need to save monthly to reach your financial target.
Related Terms
EMI (Equated Monthly Installment)
A fixed monthly payment made by a borrower to a lender. Each EMI covers both interest and principal …
Equity
The portion of an asset that you truly own — the difference between its market value and any outstan…
Escrow
An account held by a third party (usually your mortgage lender) that collects and pays property taxe…
Expense Ratio
The annual fee charged by mutual funds and ETFs, expressed as a percentage of assets. A 0.03% expens…
Savings Rate
The percentage of your gross or net income that you save and invest. A higher savings rate is the mo…