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Emergency Funds: What They Are, How to Get One, and Everything Else You Need to Know"

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Pevolut

6/2/2025

Emergency Funds: What They Are, How to Get One, and Everything Else You Need to Know"

Life happens. Your car breaks down, your fridge stops working, or you suddenly lose your job. These aren’t just inconveniences—they can quickly become full-blown financial crises if you're not prepared. That’s where an

In this blog post, we’re breaking down everything you need to know about emergency funds: what they are, why you need one, how much to save, and exactly how to build one—even if you're starting from scratch.

What is an Emergency Fund?

An emergency fund is a stash of money set aside specifically to cover

  • Medical bills

  • Sudden job loss

  • Urgent home or car repairs

  • Emergency travel

  • Natural disasters or accidents

It’s not meant for concert tickets, new gadgets, or last-minute vacation deals (sorry!).

Why Do You Need an Emergency Fund?

Emergencies don’t wait until you're financially ready. Having an emergency fund helps you:

  • Avoid debt

  • Reduce stress

  • Stay on track

Think of it as your financial airbag—something you hope you never need, but you’ll be glad it’s there if you do.

How Much Should You Save?

There’s no one-size-fits-all number, but a good rule of thumb is:

  • Beginner level

  • Next level

For example, if your monthly expenses are ₦200,000, aim for ₦600,000 to ₦1.2 million in your emergency fund.

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