Broker Check
Financial Emergency Fund

Financial Emergency Fund

March 03, 2017
Share |

      

Are you prepared for a financial emergency? Do you have a secret stash saved for a “rainy day?”

What exactly qualified as an emergency?

  • Natural Disasters
  • Physical Accidents
  • Vehicle Accidents
  • Home Repairs
  • Funeral Expenses
  • Loss of Employment
  • And so many other possibilities...

As Financial Advisors, we suggest that you have a certain amount saved up for those instances that cannot be predicted. If your household as two incomes, we suggest you prepare 3 full months’ worth of living expenses in case of an emergency. If your household lives off a single income, we suggest you prepare with 6 months’ worth of living expenses in case of an emergency.

Depending on your personal preference of risk taking and confidence in job security, this number may fluctuate up or down. However, that 3-6 months is usually a safe goal to have in your back pocket.

And as a final note, your emergency fund should be in fairly liquid accounts, such as a Money Market Fund. This allows for that money to be easily accessed if needed.

We also hope for the best, but there are things we simply cannot expect and our goal is to make sure you are covered!