contingency fund

Definition

An amount kept in reserve to guard against possible losses.

Use contingency fund in a sentence

We had a strategy of not exposing our selves to too much risk so we had a contingency fund available.

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You should try and keep a separate contingency fund so that you always have something to fall back on if you need it.

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The CFO always advised the managers to have a large percentage of cash asset's on the company's books as sort of a contingency fund for market volatility.

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