Prepare for the unexpected! đź’ˇ An emergency fund isn’t just a financial cushion; it’s your lifeline when unexpected curveballs strike. Building this safety net for yourself grants you peace of mind and allows you to #moneyconfidently.
“When we think about having an emergency fund, we generally recommend having anywhere from 3 to 6 months of your fixed expenses. Things like your rent, your groceries, your utility bills. The things that you have to pay every single month. If you’re a one income household, we recommend closer to 6 months.
If you’re two income household, we recommend closer to 3 months, but anywhere in between is completely fine. We then recommend that you have that in a high yield savings account. This is very similar to a traditional savings account, except you’re earning up to 4% or 5%, as it stands right now. Much better than the pennies that you’re earning in your traditional savings account.“
