In my first post on emergency funds, I discussed why having an emergency fund is a wise idea. The next question is, how big does an emergency fund need to be?
The question of how much should be set aside for emergencies is one of several that people tend to avoid. It can be avoided either by not saving anything, or by saving much more than is needed. I’ve seen clients do both, although the former is the more common error. Most people want to think about an emergency fund about as much as they want to think about …Read More