In the previous blog post, I looked at how many people have emergency savings. Many financial advisers suggest having three months of expenses saved up. Why is three months “the rule?” Why not six months or one month? Continue reading Why is 3 Months the Rule for Emergency Savings?
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Why Don’t More People Have Emergency Savings?
Financial advisers and the media (e.g. Time and NY Times) suggest the typical person should have 3 months of income saved in case of emergency. Emergency funds are important because people without these savings have no fall back when an unexpected bill, reduction in income or incredible opportunity arises. While having emergency savings is a good idea, relatively few people have this backup. Why don’t more people reduce their financial risk and put money aside? Continue reading Why Don’t More People Have Emergency Savings?