Build An Emergency Fund

Everyone knows they should have an emergency fund, but how much should you actually save? Websites like practicalmoneyskills.com and bankrate.com have online calculators to help address your specific needs, but generally speaking: • Create a simple budget and sock away about six months of living expenses. • Be honest about your actual living expenses to avoid underestimating. • Don’t mindlessly toss extra money into an emergency fund. Overfunding an emergency fund takes money away from investments that could be earning a higher financial return.