Does Your Emergency Fund Cover These 8 Expenses?
Being in a financial pickle, out on a limb, or even up the creek is no fun. And it's especially problematic when you don't have the cash on hand to buy a ticket back to solid ground.
According to Bankrate's Financial Security Index survey, only 39% of Americans have $1,000 on hand to cover financial emergencies. The same survey indicated that even $1,000 wouldn't be enough -- because financial disasters cost, on average, at least $2,500.
So how much do you really need in an emergency fund? Experts say your emergency cash balance should be enough to cover three to six months of living expenses. If you live by credit card charges and automatic bill pay, you might not have a clear picture of your monthly outlay for necessities. So grab a pen and paper now, and let's go through the eight expenses your emergency fund needs to cover.
Source Fool.com
