We all know the importance of having a savings plan for unexpected expenses. However, do you ever wonder if the amount of money you have stashed away is enough to sustain your lifestyle in the event of a sudden medical emergency, or long-term unemployment period?
For years experts have been reporting that you need to have a minimum of three-to-six months worth of living expenses in your emergency fund. Suze Orman, a personal financial guru, thinks that goal falls a bit short.
She suggests having at least eight to 12 months worth of your living expenses in your bank account — just enough to give you piece of mind if you ever find yourself in a financial cul-de-sac.
Photo via: A Cup of Jo blog
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