3 Signs You Need a Bigger Emergency Fund
With a new year approaching, now's the perfect time to start getting a better handle on your finances. And one crucial aspect you mustn't ignore is your emergency fund.
Simply put, no matter what you do, how old you are, or how much you earn, you need enough money in the bank to cover a minimum of three months' worth of living expenses -- but that's really just the minimum. Here are a few indications that a mere three months of living costs won't cut it for you.
The purpose of an emergency fund is to offer a fallback option when the unknown rears its ugly head, whether that means losing your job, getting injured, or having your roof cave in. So if your income tends to vary considerably from month to month, it stands to reason that you'll need more savings on hand than the average worker.
Source: Fool.com
