Most experts says that you should set aside 3 to 6 months of Emergency Funds. But we should also know what are the effects of over or under-fund of emergency funds.
But how much is the right amount for me?
Income and not expenses. Why? Most often than not, our salary or income is much bigger than our supposedly monthly expenses.
The basic purpose of emergency fund is to build up your savings during your high-earning months in preparation to your low-earning months.
How much in detail should my emergency fund be?
The answer is highly subjective because no one can really predict the future. But you may follow the following guidelines to know how much should you set aside for your emergency fund:
Which category suits you well? Do you need assistance? Leave a message!
source: www.moneyunder30.com
Up Next! RIGHT and WRONG places to store your emergency funds!
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