What Is an Emergency Fund?

An emergency fund is, you would typically keep that money in to a savings account. If if you have zero to three emergencies in your life, the idea is that you will be withdrawing from this account zero to three times. You can set it up to be conservative, but it should grow, because you're really not going to be tapping it. It's often a big difference between people who have built meaningful wealth and those who haven't.