An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly.
Here are some of the top emergencies people face:
Aside from financial stability, there are other pros to having an emergency reserve of cash.
Here are the answers to some top questions about emergency funds.
Money market fund
A mutual fund that invests in very-short-term securities. Because they tend to have stable share prices and a relatively low rate of return, money market funds are often used for the cash portion of a portfolio or for holding money you'll need soon.
All investing is subject to risk, including the possible loss of the money you invest.