Webster’s dictionary says that an emergency fund is “an unforeseen combination of circumstances or the resulting state that calls for immediate action.” That “call for action” is the second part of this topic, FUND.
This one is all too familiar to Americans in this economy. When you lose your job, what do you do? Most take out unemployment benefits.Unfortunately, the government’s unemployment check will barely cover the food bill. To make up the difference, an emergency fund would help ease the strain of unemployment while you search for a new job.