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Having an emergency fund is an essential part of smart financial planning since it ensures you have the cash you need when an (inevitable) emergency happens. Your emergency fund helps you avoid putting things like unexpected car repairs on a credit card, and also ensures you can make your payments and rent/mortgage each month if you are laid off or become unable to work for a period of time.
Everyone should have an emergency fund, but it can be hard to determine exactly how much cash you need to set aside.
