If you’ve ever read a book on personal finance, then you’ve likely been told that having an emergency fund of cash set aside is the most important financial goal when you begin managing money.
Typically, you hear arguments focusing on the financial benefits of an emergency fund.
In this article, I review the findings of a 2022 research paper that show that having an emergency fund is not only a good way to protect your money but also your mental health — especially if money is tight for you right now.