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Because life is full of surprises, having an emergency fund on hand can give peace of mind in the event of unforeseen circumstances such as job loss, serious medical issues, or expensive home repairs. Aim for an emergency fund that can cover three to six months' worth of living expenditures.u00a0Set up automatic transfers from your checking account to a savings account, as suggested by Marc Louvet. Don't take money out of your emergency fund for non-urgent needs; instead, treat it as a fixed expense.
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