Why an Emergency Fund is a Good Idea
An emergency fund is the rainy-day fund; it’s for the out of the ordinary, once in a blue moon expense that you need money for RIGHT NOW. It is for expenses that are both URGENT and IMPORTANT, and the purpose of this money is to be available when you need it. Most financial advisors and bankers will tell you that you should have at least the equivalent of three to six months’ worth of living expenses saved in this emergency fund. WHY IS SIX THE MAGIC NUMBER? If you’re far out from retirement and have a steady job, keeping six [...]