Your Emergency Fund Needs to Be Bigger Than You Think

emergency fund

A couple of weeks ago I wrote about how the “Emergency Fund” should really be called something else, since so few financial events are really emergencies. Regardless of what you call it, you need to be setting money aside to cover car repairs/replacement, appliance replacements, home maintenance, medical expenses, and all those pesky problems of life.

The thing is, we often fall into the trap of thinking that we “only” need to save enough to cover the problem. We think that if we have enough to cover the car repair, buy a new car, replace the roof, replace the air conditioner, or pay the medical bill then we’re all set. Unfortunately, most financial “emerg

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One Response to Your Emergency Fund Needs to Be Bigger Than You Think

  1. HouseLogic says:

    I definitely agree with you on this, especially since I know the saying “when it rains, it pours” is legitimate. I always strive to have at least 2 months worth of paychecks saved up in the bank, more if possible.
    -Jack

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