always give your money work to do – could be anything : emergency fund , in a high savings instrument earning interest , stock market , in a business , into an investment , pay back loans ( reducing debt ) , rent , credit card payments.

The reason

Money gets bored sitting idle and loses it’s value to inflation ( the phenomenon where the value of things goes up over time, they become costlier over time ). Inflation varies from year to year and country to country.

The emergency fund should be in a liquid high savings instrument and equivalent to three years of your monthly expenses.

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