Ready for an emergency?
The time to think about how you’ll pay for an
emergency is BEFORE the emergency happens. That’s
why many fi nancial professionals recommend you
keep savings equal to at least three to six months of
basic living expenses in an easily accessible, low-risk
account like a savings account. How much money do
you need every month just to get by? Let’s fi gure it out.
Use your expense tracking to get started. First, add
up your fi xed monthly expenses like rent or mortgage
payments and utilities. Then add the amount you
spent for food and other necessities. By averaging these
expenses over a three-month period, you’ll know what
amount you absolutely must have each month. Once
you know that, you’ll know what you need for your
emergency fund.