Life happens.
Cars break down.
Jobs change.
Unexpected bills arrive.
That’s why every investor should have an emergency fund.
A Good Target
Most people should aim for 3–6 months of essential living expenses.
If your income is unpredictable or you’re self-employed, you may want even more.
Easy way to put it, what do you spend every month on rent, bills, car, gas etc. and multiply it with 3-6 and you will find your number.
If you have children or live in a house, I would recommend adding another month at least.
Where Should You Keep It?
An emergency fund isn’t meant to grow quickly.
It’s meant to be available.
Keep it somewhere safe and easy to access, such as a high-interest savings account.
Remember
Your emergency fund isn’t an investment.
It’s insurance against life’s surprises.