Who can predict life and tell what exactly would happen? It is important that we save enough for rainy days. Say, suddenly you are out of work, do you have enough savings to keep you going without worrying about your monthly bills and groceries while looking for another job?
The next question is, How much is enough as an emergency funds? Basically, a three months worth of your salary is good enough. But if you can make a savings of about 4 to 6 months worth of your salary, the better. 3 months is enough period of time for you to be able to set yourself again. Any savings more than that makes you more secure and safe.
It is important that you set this money aside in an account separate from your regular savings account. If you mix it with your regular savings, you might be tempted to use if for things other than an emergency. This way, you can sleep at night knowing you have nothing to worry about.
I\'m Cath, a 28 years old mother of 2 wonderful daughters. I am a certified WAHM! I am not into parties and night outs, and blogging is my way to connect to the world.
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