One thing is true of life…expect the unexpected. That’s why any financial guru around will stress the importance of having an emergency fund. If you’re confused on what exactly an emergency fund should be used for, I can tell you it’s not for that 65” TV you’ve been eyeing at Best Buy when yours bites the dust. While that may seem like a catastrophic event to some, it’s not exactly the type of crisis that you’ll want to dip your fingers into your cash stash for.
Can an Emergency Fund Ever Be TOO Big? Whether it’s on a personal level or a business adventure, most financial professionals will suggest you have an emergency fund of some type when the unexpected happens, so you aren’t left jostling to make ends meet financially. There are varying opinions on everything from the ways to build that fund to exactly how much you need have access to in those situations. However, there are times when an emergency fund can get out of control and you need to reign it back in. At a personal basis, the standard size most experts will suggest you have is a three to six month cushion* (if you have not started saving then work toward getting at least one month put back). This is not money you have invested in something you will have to pull out. This is cash on hand…or perhaps in a savings account […]