How Strong Is Your Emergency Fund? – EDWARD JONES

Written by on June 28th, 2024


You can’t predict financial emergencies — but you can prepare for them.

To do that, you can build an emergency fund to pay for unexpected expenses resulting from a home or car repair, a medical bill, or even the costs connected to damages from a natural disaster, such as a flood or wildfire or tornado.

Generally, it’s a good idea to keep three to six months of living expenses if you’re working, or up to a year’s worth, if you’re retired. And since you’ll need the money quickly, and you’ll want to be sure it’s there for you, keep your emergency fund in a liquid, low-risk account.

Given your normal expenses, you may find it challenging to put away money in an emergency fund. But you can make it easier by having some of your paycheck automatically go into your fund. And you can also add other income, such as bonuses or tax refunds.

Try to avoid dipping into your emergency fund for everyday costs or impulse purchases. By keeping this fund intact until it’s truly needed, you can help yourself weather many of the storms that may come your way.

This content was provided by Edward Jones for use by your local Edward Jones Financial Advisor, Casey Caliva, at Historical 30th & Fern. 

Address:  2222 Fern St., San Diego CA 92104
Phone:  619-516-2744