A Contingency Fund is a reserve of money set aside to cover unexpected expenses or emergencies. This fund helps individuals, businesses, or organizations manage financial risks without disrupting their regular budget. It acts as a safety net, ensuring that unforeseen costs can be addressed promptly. Typically, a contingency fund is built up over time and can be used for various purposes, such as medical emergencies, home repairs, or business disruptions. Having this fund in place provides peace of mind and financial stability, allowing for better planning and decision-making in times of uncertainty.