National Retirement Planning Month - Creating An Emergency Fund

The purpose of having an emergency fund is to have cash on hand for unexpected emergencies. The goal is to have cash available for these emergencies rather than having to take out a loan or rack up high-interest credit card debt. Many financial advisors recommend setting aside three to sixth months’ worth of living expenses in a savings account. For example, if it costs you $3,000 per month to run your household, you should earmark $9,000 to $18,000. Start setting aside some money from each paycheck even if it’s a small amount like $25-$50. The goal is to develop a savings mentality and the hardest part is getting started.