What’s The Truth About an Emergency Fund, Other Than The Fact That You Need One?
Typical standard advice is to have an emergency fund of 3 – 6 months worth of expenses in the case of an emergency, which depending, seems to be at least a monthly occurrence for many. This episode talks to the advice of nearly a year worth of household expenses sitting in an account just waiting for an emergency to happen. That would be great! Now, here’s a piece of everyday reality pie… if most people aren’t saving enough for retirement, people have a hard time following advice on how to just LIVE into retirement healthy, people don’t get their car oil changed until it’s literally turned into ink and finally, a high number of people are living paycheck to paycheck. All that being said, guess what? A lot of folks don’t have 3 – 6 months of emergency savings.
All hope isn’t lost though, folks are devising ways to make it in case of emergency. And as much as the finance gurus warn against it, a good number of those people rely on their retirement fund or anything else they can reach for. Friends and family support systems and even the family car may have to go if things get tight before you get your money right.