Emergency fund vs investing

What is an emergency fund?

An emergency fund is a cash reserve used to cover unexpected expenses like job loss, repairs, or medical costs.

Why it matters

Without an emergency fund, you may be forced to sell investments at the worst possible time.

When to start investing

Many people aim to build 3–6 months of expenses in cash before investing heavily.

Finding the balance

A common approach is to build a basic safety buffer first, then invest consistently while continuing to grow your emergency fund.