What is Emergency Fund?
An emergency fund is a financial cushion that protects you from unexpected events. It’s the money you can access quickly when something unexpected happens.
How much to save?
The recommendation is to have between 3 to 6 months of your monthly expenses. If you spend R$ 3,000/month, your ideal reserve is between R$ 9,000 and R$ 18,000.
Where to keep it?
The reserve needs to have daily liquidity (immediate access):
Never leave it in stocks, real estate funds, or investments with a redemption deadline.
How to build it?
- Define the target value (3-6 months of expenses)
- Set aside a fixed amount every month (10-20% of income)
- Automate the transfer
- Don’t touch it until you reach the target value
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