Fund for difficult time

EMERGENCY FUND AND RESERVE

Financial position is challenging to predict and depends upon lots of factors. People often make a significant investment and buy considerable assets without creating EMERGENCY funds or reserves. When an emergency arises, people get confused about whether to break an investment or sell assets in a difficult time.

The basic rule is that first we should keep some money in bank saving account for any emergency and after that,, you should make an investment or buy some asset.