Do I need an an Emergency Fund? Short answer yes, long answer.... this is where it gets tricky, still yes.
Because life is expensive even when everything goes right. An emergency fund can become a life line for you in case of emergencies. Having access to emergency cash to cover unexpected expenses gives you peace of mind that you are covered if the odd occurrence ever happens.
It also prevents you from digging yourself deeper into a hole by using emergency savings instead using your credit card for emergencies.
Your emergency fund should be liquid and easy to access. Weather you place it in a bank or keep it under your bed, it should take a minimum amount of effort to gain access to.
In an ideal world your emergency fund goal should encompass 6 to 12 months of living expenses. However due to it being an imperfect world a short term emergency fund goal should be $1000-5000. With this amount you can take care of most non-medical emergencies. You also want to ensure that your account constantly at your set goals, so whenever you use funds from your emergency account, replenish it as soon as possible.
Because life is expensive even when everything goes right. An emergency fund can become a life line for you in case of emergencies. Having access to emergency cash to cover unexpected expenses gives you peace of mind that you are covered if the odd occurrence ever happens.
It also prevents you from digging yourself deeper into a hole by using emergency savings instead using your credit card for emergencies.
Your emergency fund should be liquid and easy to access. Weather you place it in a bank or keep it under your bed, it should take a minimum amount of effort to gain access to.
In an ideal world your emergency fund goal should encompass 6 to 12 months of living expenses. However due to it being an imperfect world a short term emergency fund goal should be $1000-5000. With this amount you can take care of most non-medical emergencies. You also want to ensure that your account constantly at your set goals, so whenever you use funds from your emergency account, replenish it as soon as possible.
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