When we think of planning our finances, we usually think of future events that we are sure about.
We think of our long-term goals and short-term goals. We even manage to figure our mid-term goals.
But, what we overlook is the future that we haven't planned for.
How many of us plan for unexpected events such as car breakdowns, or emergency hospital bills or losing a job?
It's for such unpleasant possibilities that we need an emergency fund. That is money kept aside exclusively for emergencies that we can't plan for.