Saving & borrowing2 min read
Emergency fundGerman: Notgroschen
An emergency fund is readily accessible money set aside for unexpected expenses or loss of income.
In plain language
The appropriate amount depends on regular expenses, income stability and obligations. Its purpose is to cover urgent costs without selling risky investments at an unfavourable time.
Let’s make it concrete
An unexpected repair costs €1,200. An accessible reserve can cover it without requiring a loan.
Simplified example for illustration.Worth understanding
An emergency reserve should not depend on favourable market prices. Plan separately for foreseeable major expenses.
Read more from official sources
For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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