Emergency Fund

The Hindu Business Line  Mar 13  Comment 
Make sure you buy insurance products and set up an emergency fund
Motley Fool  Jan 2  Comment 
Hint: It’s not just the bank.
Motley Fool  Nov 14  Comment 
Make sure you're covering all your bases.
Financial Times  Nov 12  Comment 
Miners vow to support relief effort following burst dams
newratings.com  Nov 11  Comment 
MELBOURNE (dpa-AFX) - Vale and BHP Billiton, as joint shareholders in Samarco, announced they pledge to support Samarco in creating an Emergency Fund for rebuilding works and to help the affected families and communities. In a Joint Statement,...
Clusterstock  Oct 20  Comment 
I recently had a conversation with a successful billionaire money manager about personal finance. I wanted the best money advice the investor had for someone my age. I'm 27, so this advice will probably be useful for most millennials —...
TheStreet.com  Aug 26  Comment 
NEW YORK (MainStreet) — More than one-quarter of all Americans have no emergency savings. Only slightly more than half have more emergency savings than credit card debt. What's more, even if you have emergency savings, there's a good chance...
Dividend Growth Investor  Jul 12  Comment 
Conventional wisdom states that individuals should have an emergency fund covering six to twelve times monthly expenses. This means that if your monthly expenses are $2000/month, you need to have $12,000 to $24,000 available in your...
Japan Today  Jun 29  Comment 
Developments in the Greek debt crisis and the Asian financial market reaction so far have yet to alarm the Bank of Japan enough to consider offering emergency liquidity, officials familiar with its thinking say. If the deepening crisis triggers...
New York Times  May 24  Comment 
Diplomats approved the creation of a $100 million fund to help the World Health Organization respond rapidly to emergencies.


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In life you should expect the unexpected, and this is why you need an emergency fund. The best you can do is to prepare for emergencies that require access to additional money and having an emergency fund is the ideal solution.

Financial emergencies can come in the form of a job loss, significant medical expenses, home or auto repairs or something you’ve never dreamed of. The last thing you want to do is be forced to rely on credit cards or a loan which could simply compound the problem.

==How Big Should Your Emergency Fund Be?== $100000.00

Most experts agree that you should keep between three and six months worth of your living expenses set aside in your emergency fund. Depending on your specific situation and whether or not you have children, carry substantial debt and types of insurance coverage will determine what amount is best for you. cash loans

The reason you want to have three to six months of expenses saved up is that the most common reason for the need of an emergency fund is due to a sudden loss of income. If you or your spouse loses a job you still have bills to pay and it may take a few months to find suitable new employment. It is best to plan for a worst-case scenario so that the smaller emergencies such as replacing the hot water heater that just went out will be easily covered.

Where should you store your emergency fund? bank account

You should be earning interest from your savings or you are losing value due to the effects of inflation, but this is not a priority for your emergency fund. Consider placing your emergency fund into a liquid money market account (MMA). Most of the time, MMAs will provide you with a special checkbook so you can have immediate access to your money in an emergency situation. It is not recommended to use your emergency fund to purchase certificates of deposits (CDs) or Treasury Bonds due to the lack of liquidity or early sale penalties. It is also not recommended that you use your emergency fund to purchase mutual funds, stocks, etc... Even though most are more liquid than CDs and Bonds, the risk and variations in the market are too great to entrust your emergency fund.

When setting up an emergency fund, you will want to open up a separate account so that the emergency fund money isn't mixed in with your regular spending money since mixing makes it much easier to spend the emergency fund money on nonemergency things.

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