Where to Put Your Short-term Savings
You have money that you may need to get to. Maybe it’s money in an emergency fund. Maybe it’s savings that you just don’t feel comfortable locking up.
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How much do I need in my emergency fund?
We’d all like to feel confident when it comes to money. Like we have a buffer that protects us from worrying about something bad happening. That’s what having an emergency-proof fund can do for us. But what’s the right amount for that fund?
Being emergency-proof is a pretty awesome thing. It means feeling invincible when it comes to the financial speed bumps, detours, and roadblocks in life. That can be pretty great. But in order for us to feel motivated about putting that money aside, we need to change the way we think about it.
Here’s where we start. We’re not going to talk about this in terms of depriving ourselves to put money away for bad stuff that might happen. That just sounds kind of depressing. Instead, we’re going to talk about how we are buying ourselves something incredible – the freedom from worrying about all those irritating “what ifs” in life.
To figure out your emergency-proof number, we’ll crunch numbers in two areas:
Remember, you don’t need to come up with this money overnight. But it’s good to have a goal to work toward. Download our Speed Bump and Detour Money worksheet for more great help in getting emergency-proof.
As we work toward becoming emergency-proof, we’ll want to consider (and be ready for) those big “what if’s” as well. If we’re truly going to live with that feeling of invincibility, then we should also think about a couple other things:
Life insurance - This helps protect your family if something were to happen to you. It could serve as a way to replace paychecks or pay major bills.
Getting emergency-proof can give us an incredible sense of freedom. And we can start anytime. Just download the worksheet. Because there’s nothing quite like feeling invincible.