This Is Exactly How Much Money Experts Say You Should Stash in an Emergency Fund
An emergency fund is one of the basic pillars of financial security. When you have a stash of cash set aside to cover unexpected expenses, you can avoid costly problems like racking up credit card debt or pulling money from your retirement fund.
However, too many people don't have a solid emergency fund. Only around 60% of Americans say they have enough savings to cover a $400 unexpected expense, according to research from the Federal Reserve Bank.
Although not having an emergency fund can put your financial health at risk, the thought of establishing one can be overwhelming. Most experts advise saving enough to cover three to six months' worth of living expenses, which will likely amount to several thousands of dollars. If that sounds intimidating, there's good news: New research shows you might actually need much less than that stashed away in your emergency fund.
Source Fool.com
