An emergency fund is an essential component of a sound financial plan. Having three to six months worth of living expenses in a high yield savings account is recommended by many personal finance experts. Before deciding how much money you need designated as an emergency fund, there are two big questions you must answer: How [...]
The Purpose of an Emergency Fund. Hint: It's Not What You Think
June 9, 2009 By 4 Comments
I was talking to a friend today about the difference between an emergency fund and a sinking fund. She heard the term “sinking fund” on The Dave Ramsey Show so she called me up to ask if I’ve ever heard of one. Well, I listen to The Dave Ramsey Show too, and if I remember [...]
