Your 6-Month Emergency Fund Isn’t Enough: Here’s Why

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That figure seems worrying.

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The bottom line is that your six-month emergency fund isnt enough.

Next, find outwhat you should do when your emergency is bigger than your emergency fund.

According to the latestU.S.

Bureau of Labor Statisticsdata, the cost of most everyday goods and services rose by 3% last year.

She explained, A stagnant emergency fund [could] leave individuals short in a real crisis.

So, its important to periodically review and adjust savings targets to reflect current expenses.

Your savings goal should be based on your lifestyle, job security, financial obligations and economic conditions.

Individuals also tend to overlook car and home repairs and medical expenses when setting six-month emergency savings goals.

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