Importance of Financial Cushion
Importance of Financial Cushion In today's fast-paced and ever-changing world, it is more important than ever to have a financial cushion. No matter how hard you work, no matter how prudent your spending, there will always be some unforeseen event or circumstance that throws your life off balance. Having a financial cushion can help you weather these storms and keep your head above water. What does Financial cushion mean Financial cushion is a term used to describe the amount of savings or cash you have available to cover unexpected costs or emergencies. It can be helpful in preventing financial stress and helping you manage your finances more effectively. Having a cushion can also provide peace of mind in difficult times. There are a few key things to keep in mind when building your financial cushion: 1. Make sure you have enough savings to cover at least six months of living expenses in case of an emergency. 2. Have an emergency fund set aside equal to three months' wor...