How much “emergency money” should we have on hand in case one of us gets laid off?
In this economy, we think six to nine months’ worth of living expenses is a prudent emergency fund. If you don't have that today, start by calculating how much it costs you to live in terms of the basics, taking out all the fun stuff you do. We have a free budget template you can download at GetFinanciallyNaked.com if you need help with this. Then, think about how much money you can set aside each month to get there over a reasonable time period. As you’re doing this, remember that your emergency fund will help reduce your life stress and let you live more from a position of financial strength.
| ||Nestperts: Manisha Thakor, MBA, CFA & Sharon Kedar, MBA, CFA, authors of Get Financially Naked: How to Talk Money With Your Honey|
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