Many people don’t have an emergency fund because when they accumulate some money, they spend it. An emergency fund should consist of 3 to 6 months worth of living expenses held in short term investments. Whether you have 3 or 6 months depends on whether you have one or two incomes. The rule of thumb is that a family living on one income should have 6 months worth of expenses. A family with two incomes may be able to get by on 3 months worth of expenses.
Disability insurance policies can also affect how much you should have in your …Read More