How do you prepare for a sudden drop in income? "With interest rates at historic lows , you could choose two routes, either take cash out of your house for an emergency fund or seek to minimize your monthly payments." This is what the emergency fund is forIndependent workers like freelancers, contractors and gig workers should always be saving up for a rainy day. You do not want to draw down all your cash before switching to your emergency fund or credit. "Don't be afraid to dip into your emergency fund that is set up for just such emergencies," said Unverzagt.

Source: CNN March 13, 2020 19:30 UTC