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Emergency Fund: Why Enough of It Matters

Managing finances is important for an individual and an organization. While it is a challenge to earn enough and keep most of it, having enough in times of urgent needs is a smart move.

An emergency fund is one of the most helpful solutions readily available in financially challenging moments. But this fund is not always included in someone’s financial planning. Not having an emergency fund or having too little of it is one of the most common financial mistakes that could be easily avoided.

Your emergency fund can be designed to fit your purpose. Individually, having immediate funds to cover a sudden expense can save you time to pay for what you need at the moment. In an organization, an emergency fund can ensure operations continue to run as you sort out issues in supply chains or other financial obligations.

The access to immediate financial resource saves you time and energy while allowing you to continue your daily operations. No one is certain about the future. One can plan for their individual expenses and business obligations and with an emergency fund, they can continue to do so without too much worry.

Damawa Tax & Accounting Services, LLC provides Financial Management in Whitehall, Ohio.

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