How much emergency fund do you really need?
Even a little can help a lot
Conventional financial wisdom says that your household should have enough cash stowed away to cover three to six months of expenses. But it’s a good idea to save even if that amount feels out of reach. Even a small emergency fund could keep you from sliding into debt if you get hit with an unforeseen expense. Here’s what you could expect to pay if the unexpected happens:
Emergency funds in action
Emergency funds aren't one-size-fits-all. Consider the different needs of two very different families.
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1 Warren Clark, AARP, 6 Proven Ways to Pay Less for Car Insurance.
2 AAA, Planning for Auto Maintenance and Repair Costs.
5 HomeAdvisor, The True Cost of Home Improvement.
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7 John Hargraves, Kevin Kennedy, Health Care Cost Institute, ER Facility Prices Grew in Tandem with Faster-Growing Charges from 2009-2016.
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9 International Foundation of Employee Benefit Plans, Average Health Care Deductible Nearly $1,500 for Individual Coverage Through an Employer Plan.
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