How much money should I have tucked away for an emergency?
Life is full of surprises, and some of them can be costly. Because you know that unexpected expenses will pop up, having a fund established to pay for it will help you avoid the temptation to tap into your retirement account.
Generally speaking, you should have about 3-6 months worth of expenses in an easily accessible account – like a savings or money market account.
Need to build your emergency fund? Try the dollar-a-day dare. Just throw a dollar into a jar every day. Or better yet – throw all your singles into the jar at the end of the day, and watch that emergency fund grow! Then, periodically deposit that money into your emergency fund savings account.