What is a emergency fund? A emergency fund is money you have saved away in case of a emergency, its a "in case of emergency, break glass" kind of thing. This is what keeps you safe enough to spend your other money on investing, and you are not forced to take it out if something bad happens in your life, that needs money to fix. I and most experts suggest 3-6 months of living expenses saved away in your emergency fund.
Albert Einstein called the compounding effect the 8th wonder of the world. If you understand the magical effect of compounding, then you will win in the game of money! His famous quote: "Compound interest is the eight wonder of the world. He who understands it, earns it... he who dosen't... pays it." This principle of compound interest is the essential ingredient in building money and wealth!
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