Emergency fund
Market basicsCash set aside to cover several months of essential expenses, held in an instantly accessible form.
In plain terms
It is meant to feel like dead money. That is the price of never being a forced seller.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Business buffer
Market basicsWorking capital held to fund quiet months in a business with irregular income.
In plain terms
Not the emergency fund. Merging them means discovering during a bad quarter that the emergency fund is gone.
Liquid fund
Market basicsA debt fund holding very short-maturity instruments, with minimal duration risk.
In plain terms
Suitable for an emergency fund. Since the 2023 tax change, roughly equivalent to a sweep-in deposit.
Sweep-in FD
Market basicsA fixed deposit linked to a savings account that automatically converts back to cash when the balance runs short.
In plain terms
Earns deposit interest while behaving like a savings account. The natural home for an emergency fund.