Do you have an adequate emergency fund in place?
Here’s how to find the answer:
If you were to lose your job today, or you were to become disabled and couldn’t work, would you be able to sustain your lifestyle with your liquid cash savings (checking account, savings account, etc.) for 3-6 months without having to go into debt or pull money from accounts that are marked for future goals?
This isn’t the only way to look at it though. Do you have enough cash in place to cover an unexpected roof replacement, new HVAC when the furnace goes out, or new transmission when your car breaks down? These things happen more often than we like to think.
If the answer to that is no, then you probably don’t have an adequate emergency fund in place.
