Emergency Funds Can Have a Surprising Downside
Why save for opportunities when everyone tells you to only save for emergencies instead?
Because you'll be operating from a place of abundance, not scarcity, and that can make a world of difference.
It's valuable for each family to have a cash emergency fund that can be tapped for true emergencies -- like a car breaking down or furnace repair in winter -- but this needn't be more than a few thousand dollars. Typically, an emergency fund is a pot of money equal to three to 12 months of living expenses.
Once you've comfortably saved for an unforeseen, short-term emergency, then you can turn your attention to higher aspirations.
Let's Get Real
It was devastating to our family when
