Every ounce of critical financial planning can go to waste if you don’t have an emergency fund to back it up. Emergency funds are a lifesaver when unforeseen expenses crop up.
There are emergencies that need immediate attention such as a daily-use home appliance breaking down or car repairs demanding early intervention. Because these emergencies usually require your immediate attention, attaching a debit card or a check-writing facility to your short-term emergency fund can be of use. You will have immediate access to your funds putting you in a position to use them whenever the need strikes.
On the other hand, a long-term emergency fund saving can get you out of the woods in case of dire emergencies not under your control such as a natural disaster or job loss, . Long-term emergency funds can be stored in investments which may take several days to liquidate. The short-term fund should hold you over until you’ve accessed these funds.