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How to build an emergency fund before you invest.

Add up your fixed monthly costs: rent, food, insurance, transport. Multiply the total by three to six. That's your target. Keep the money in a separate account you can access any day, not in stocks. Set up a standing order that transfers right after payday, so you don't save only whatever happens to be left at month's end.

Useful: An emergency fund stops a broken washing machine from turning into expensive overdraft debt.

Source: verbraucherzentrale.de

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