Why is it crucial to maintain emergency savings?

Maintaining emergency savings is essential because it provides a financial cushion during unexpected events. Life is unpredictable, and emergencies can arise at any time, such as job loss, medical expenses, car repairs, or other unforeseen circumstances. Having a dedicated fund for these emergencies helps individuals avoid falling into debt, relying on high-interest loans, or making panic-driven financial decisions. This financial prep boosts peace of mind and ensures that you can manage life's surprises without derailing your financial stability. By securing yourself with emergency savings, you are prioritizing long-term financial health and resilience.