Weekly Money Saver: Emergency Funds
You and your partner can plan ahead as much as you please, but face it — neither of you can foresee the future. When it comes to emergency funds, it’s always best to save and prepare so if an emergency does strike, both of you aren’t left with a dwindling bank account. But just how much should you save?
In this economy, we think six to nine months’ worth of living expenses is the perfect amount. If you don’t have that today, start by calculating how much it costs you to live in terms of the basics, taking out all the fun stuff you do (yes, that includes sandal shopping and your frequent fro-yo habit). Then, think about how much money you can set aside each month to reach your goal in a reasonable amount of time. As you’re doing this, remember that your EF will help you & your husband reduce your life stress & help you become more financially stable — even if that means having to cut back.
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