Many people don't expect any emergencies to happen in their life, and if they do, they expect to deal with it when it happens. If you are one of those, I encourage you to change your mentality on this subject, because at some point, you WILL have an emergency. You need to have this money where it is barely accessible, where you actually have to work to be able to use it. And by work, I mean, pull the money out of the bank, or something that will inconvenience you to use it. The hope is that this money always stays put, and that you never need to dig into it.
With that said, I encourage you to take a portion of your tax return (if you are getting one), and put it back for a rainy day. You'll feel much better knowing that you've accomplished this, and if that emergency ever arises and you need it, you'll feel even better.
How much do you recommend keeping in your fund?
ReplyDeleteThanks for the comment. Regarding an emergency fund, I recommend having $1,000, as well as 6 months worth of your necessary expenses on hand for emergencies. This includes house payment, car payments, insurance payments, groceries, etc. Basically, things you cannot cut from your normal life. I recommend putting this into a money market account, which draws a little more interest than a checking account at this time.
ReplyDeleteOn another note, I am currently in the process of reinventing my personal finance blogging. I do not have it up and running yet, but when I do, I will create a post to update viewers to the new site. I appreciate you taking the time to read my blogs in the past, and look forward to working with you in the future!