Thursday, January 21, 2010

Emergency funds

Emergency funds are for emergencies, not Disney. The only thing the words have in common is both end in “Y.”

Emergency funds are three to six months of basic living expenses kept in a separate, not to be touched, account. You may never have to use these funds, but if you do you'll find having the funds set aside will turn emergencies into mere annoyances.

You also will find tremendous peace of mind.
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