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Having an emergency fund

Having an emergency fund

An emergency fund is money you set aside for life’s unexpected events such as a car wreck or loss of employment. 

Dave Ramsey is one of America's most influential financial advisers and a big proponent of the having an emergency fund. Dave recommends that each household have at least 3 months of living expenses saved up in an emergency fund.

Once you have accomplished this goal, we suggest you continue to increase your emergency fund to cover as much as 6 months of living expenses if at all possible. The more money you have socked away for a rainy day, the better you and your family will sleep at night no matter what may happen to come your way.

Your emergency fund is not an investment. It should be kept as easily accessible cash.

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