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Emergency Fund
Explanation:
Also known as a "rainy day fund," an emergency fund is money set aside as a type of financial safety net in case unexpected expenses or some other hardship occurs.
Our Thoughts:
Prior to the Great Recession, it was generally recommended that consumers save at least three months of their salary in case of emergency. However, the widespread and prolonged joblessness seen during this time caused the general consensus to shift to the point that we now suggest that consumers strive to build a nest egg of 9 months' salary nest.