Why I keep a 6-month emergency fund even though I don't really need it - Business Insider

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You could invest your emergency fund for a higher return, but what if you end up needing the cash?

consists of money you set aside to cover any unplanned expenses that might come your way., meaning you could access it quickly if needed. A bank account is the most common type of liquid account.

Emergency funds are also used as a buffer to fund your lifestyle if you were to lose your job. A record number of Americans are faced with this challenge today, and having money set aside in an, I looked at the two options in front of me:Building your fund over time means balancing paying off debt, investing, and saving.

Most personal finance experts recommend keeping anywhere from three to 12 months' worth of expenses saved in an emergency fund. Where you land on that spectrum depends on a lot of factors, including your health, your likelihood of losing a job, and your overall risk tolerance.

 

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