{"id":353783,"date":"2021-07-05T12:00:58","date_gmt":"2021-07-05T18:00:58","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=353783"},"modified":"2022-02-25T20:20:16","modified_gmt":"2022-02-26T03:20:16","slug":"stash-emergency-fund","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/finance\/stash-emergency-fund\/","title":{"rendered":"Where to keep your emergency fund"},"content":{"rendered":"\n
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If we learned anything from 2020, it\u2019s that it\u2019s a good idea to prepare for the unexpected. This is especially true when it comes to finances. An emergency fund can help ensure that an unexpected expense or sudden job loss doesn\u2019t derail you completely. It\u2019s designed to provide a cushion and buy some time so you can adjust your budget or take other tactics to navigate an unexpected financial crisis.<\/p>\n\n\n\n

A common question that comes up is \u201cHow much should you have saved<\/a> up in your emergency fund?\u201d The answer is, it depends on your income and necessary expenses. In general, it\u2019s recommended to have at least three to six months\u2019 worth of expenses set aside. <\/strong><\/p>\n\n\n\n

If you have a very stable job, you may be able to lean toward the shorter end of the spectrum, but those with variable incomes or minor dependents may want to have the full six months\u2019 worth, or more if possible. Some people consider all regular expenses when totaling up their monthly expenses, while others only count absolutely necessary costs such as food, shelter and utilities.<\/p>\n\n\n\n

So, where should you keep your emergency fund? The general principle is to keep it somewhere you can get to easily but separate from the rest of your finances so you\u2019re not tempted to dip into it.<\/p>\n\n\n\n