E61: Emergency Fund 101
July 1, 2020
How healthy is your emergency fund? How big should it be? Where should you put it? We talk through these questions and more.
Emergency Fund 101
- Purpose of an emergency fund
- Cover unforeseen emergencies
- Not planned expenses
- Traditional rules of thumb
- 3-6 months of take-home pay
- Single income - 6 months
- Dual income - 3 months
- New normal: 6-12 months?
- Where should an emergency fund be held?
- Appropriate account types
- Savings
- Money market
- Inappropriate account/fund types
- CDs
- Stocks / equity funds / bonds
- IRAs
- Where is the emergency fund in priority?
- First priority (before investing)
Intro/outtro music credit: eccentric - I Can Show You [Argofox Release] by Argofox