1. Money
Paula Pant

How Big Should Your Emergency Fund Be?

By November 16, 2012

Follow me on:

How large should your emergency fund be?

There's no "right" answer, but some of the most popular rules of thumb say:

  • Save $1,000 if you have high-interest credit card debt, then spend the rest of your money repaying your debt. After all debt other than your mortgage (and possibly a low-interest student loan) is repaid, switch your focus back to building an emergency fund.
  • Save 3-6 months of living expenses if you have a secure, stable job.
  • Save 6-9 (or even 6-12) months of living expenses if you have irregular income or work in a volatile industry.

Learn more:

Comments
No comments yet. Leave a Comment
Leave a Comment

Line and paragraph breaks are automatic. Some HTML allowed: <a href="" title="">, <b>, <i>, <strike>

©2014 About.com. All rights reserved.