Disastrous months happen periodically …. The water heater no longer heats, the dishwasher stops washing, and your family begins a first-name relationship with the nurse at urgent care. You’re driving to work, enthusiastically chanting your best, “You can make it!” pep talk, only to see smoke erupting from under your hood.
Bad things happen to everyone, but instead of conveniently spacing themselves, they typically arrive in waves. The important thing is to have a financial life preserver, in the form of an emergency cash fund, ready to go.
Although many people agree that an emergency fund is an important resource, they’re not sure how much to save or where to keep the money. Others wonder how to find extra cash to sock away. One recent survey found that 29% of Americans lack any emergency savings whatsoever.1
“Every prudent man acts with knowledge.” (Proverbs 13:16).
How much money? When starting an emergency fund, set a target amount. How much is enough? Unfortunately, there is no “one-size-fits-all” answer. The ideal amount in you ...
