Emergency Fund

Explanation

An emergency fund is money held in an easily accessible account (not invested) that exists only to absorb shocks — job loss, a medical bill, an urgent repair — without forcing you into debt. A common target is 3–6 months of essential expenses, built gradually with automatic transfers.

Example

If your essential monthly costs are 20,000,000 tomans, a 3-month emergency fund means keeping 60,000,000 tomans in a savings account you don't touch for anything but a genuine emergency.