3 Reasons I Have a 12-Month Emergency Fund
Monday, 29 April 2024, 20:00
Building a Strong Safety Net
This writer doesn't skimp on emergency savings, insisting on keeping a 12-month fund for added security.
Key Reasons for a Larger Fund:
- Self-Employment: Lack of severance or unemployment benefits necessitates extra savings.
- Variable Income: Fluctuating earnings due to unique job circumstances require a larger emergency cushion.
- Peace of Mind: Absence of familial financial support underscores the importance of saving for unforeseen events.
It's acknowledged that overfunding emergency savings may sacrifice higher investment returns, but the mental relief and security from a robust fund can outweigh potential gains in the market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.