One important aspect of our educational system that is lacking is the incorporation of personal finance into the curriculum. At the heart of personal finance is budgeting and living below your means, while this will give you better chance of achieving financial freedom there are other steps to take to ensure your path to achieving your goals. Saving money for retirement isn't enough; you also need to plan and find ways to secure your plan to keep it from failing. One method of securing your financial plan is an emergency fund. Creating an emergency fund is an important step in personal finance. Some people skip this step and later regret it when the need arises.
So, what exactly is an emergency fund? And why is it so crucial? An emergency fund is money set aside to cover unexpected expenses or to replace lost income temporarily. Life is full of unexpected events, and it is critical to be prepared for them.