Main Line 844-469-3904

« Budget: Income and Expense Categories | | Debt Management »


The Emergency Fund


It is recommended that a sufficient amount of liquid assets be maintained at all time to handle emergencies so that there is not an immediate need to borrow money or liquidate investments at an inopportune time.

So how much should you have?

A good rule of thumb is that the client should have the equivalent of three to six months of fixed and variable expenses in liquid accounts for emergencies. Disability is one of those emergencies and disability insurance policies come with a waiting period before benefits kick in. Make sure your emergency fund is adequate enough to cover this period of time as well if it differs from the three to six month rule of thumb.




Feed Follow this conversation by subscribing to it here.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment