Do You Have a Safety Net? Life is hard and full of unexpected surprises. The difference between an inconvenience and a crisis can be as simple as having the funds to pay for the mishap. That is where an emergency fund comes in. Typically, it is suggested to have 3 to 6 months of salary saved and set aside for unexpected emergencies. This type of emergency fund is cash saved for such a situation.
So when you have a sudden expense pop up, ask yourself:
- Was this unexpected?
- Is the expense necessary?
- Is it urgent I get this done right away?
“Great emergencies and crises show us how much greater our vital resources are than we had supposed.” William James