Kiplinger

Emergency Funds Can Have a Surprising Downside

Why save for opportunities when everyone tells you to only save for emergencies instead?

Because you'll be operating from a place of abundance, not scarcity, and that can make a world of difference.

It's valuable for each family to have a cash emergency fund that can be tapped for true emergencies -- like a car breaking down or furnace repair in winter -- but this needn't be more than a few thousand dollars. Typically, an emergency fund is a pot of money equal to three to 12 months of living expenses.

Once you've comfortably saved for an unforeseen, short-term emergency, then you can turn your attention to higher aspirations.

Let's Get Real

It was devastating to our family when

Você está lendo uma amostra, registre-se para ler mais.

Mais de Kiplinger

KiplingerLeitura de 2 minsInvestments & Securities
10 Best Value ETFs to Buy for Bundled Bargains
Value stocks are finally having their day, and that has meant great things for a host of long-maligned value exchange-traded funds (ETFs). Up until last year, growth had spent more than a decade running up the score against value stocks. However, onc
KiplingerLeitura de 3 mins
Thinking of Buying an RV or Motor Home? Think Again!
“I run a photography business with my wife and adult son, traveling around the country taking photos of school kids and teachers for yearbooks. We are considering purchasing a large motor home where we can live and have a setup to take portraits and
KiplingerLeitura de 1 mins
Updated Exclusive Social Security Benefits Forecast: COLA Likely to Jump to 4.5% in 2022
After several years of tepid cost-of-living increases, seniors are likely to get a significant raise in their Social Security benefits in 2022. The Kiplinger Letter is forecasting that the annual cost-of-living adjustment for Social Security benefits