Creating an emergency fund
Your mom probably told you to carry a quarter in your shoe in case of an emergency and you needed to make a phone call. Today, most of us have a cell phone handy, but when it comes to money emergencies, you'll need more than a quarter in your shoe.
You need an emergency money account. That's an account that you build and leave alone except in case of emergency. Experts generally suggest you sock away three to six months of expenses in an account that is easily accessible such as a money market or savings account.
Compute how much you need in your emergency savings account. Let's start with three months.
If you prefer to see a .pdf version of the letter, click here.
My emergency fund requirements
|
|
