An Emergency Fund is a useful tool for everyone to have to deal with the unexpected events that happen in life. My Emergency Fund has come to my rescue more times than once when unexpected events showed up in my life.
Whether you're faced with a sudden job loss, as I have experienced in my own life; or, your furnace unexpectedly breaks down in the middle of winter, having an Emergency Fund will allow you to get through all of these situations without having to dip into credit cards or other forms of credit.
Many financial experts recommend that you save between three to six months worth of expenses in an Emergency Fund. However, I recommend that you save between eight to twelve months of your expenses in your Emergency Fund. As mentioned previously, my Emergency Fund came to my rescue during what should have been one of the most stressful times of my life. I lost my job when I was three months pregnant; however, I did not divulge the fact that I was pregnant to my previous employer, so they were unaware of my pregnancy during the time I was laid off. Nonetheless, I was able to weather that financial storm with ease as my husband and I had saved 12 months worth of our expenses in our Emergency Fund.
Give yourself the peace of mind of knowing that you have a well capitalized Emergency Fund in place for those times in life when unexpected financial emergencies present themselves. It's not "if" unexpected financial events occur, it's "when" they happen. I want you to be prepared when these financial emergencies show up in your life!
I look forward to connecting with you soon! Make sure to keep reading my blog to get more great financial tips and strategies for building wealth and crushing debt!
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