3 Questions to Ask Yourself Before Tapping Your Emergency Savings
Though most Americans aren't prepared to handle a financial emergency, the good news is that nearly one-third of U.S. adults have enough cash socked away to cover six months or more of living expenses. In fact, given that the basic requirement for an emergency fund is to replace anywhere from three to six months of living costs, some folks are, in fact, ahead of the game.
But while having that money in place is certainly a good starting point, you may be tempted to use that cash for non-emergency purposes -- even if unintentionally. For example, though tapping that fund to pay for a vacation is a clear misuse of your emergency savings, where does your car insurance payment, or new dishwasher, fit into the equation?
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Source: Fool.com
