5 Mistakes to Avoid with Your Emergency Fund

Having an emergency fund is great, but managing it correctly is just as important.

1. Using it for Non-Emergencies

A sale on electronics is not an emergency. A broken tooth or a flat tire is.

2. Investing it in the Market

The money needs to be boring and safe. You can't afford for it to be down 20% when you need it.

3. Making it Too Hard to Reach

If it takes 5 days to transfer the money, it's not useful in a crisis.

4. Forgetting to Replenish

If you use the fund, make it your top priority to build it back up as soon as possible.