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To: DugwayDuke; al baby

These days, 2 months is inadequate for most folks. Six months is more practical. Another formula is one month for each $10k of annual income. Takes into account that it is easier to find low paying jobs than high paying jobs.


28 posted on 01/10/2016 1:21:47 PM PST by PAR35
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To: PAR35

“These days, 2 months is inadequate for most folks. Six months is more practical.”

You may be correct, it does depend. Two months is a good start for most who have no emergency fund but it does depend upon how reliable your income streams are. Those dependent upon commissioned based income probably need more of an emergency fund than a government worker. The big key is to focus on irreducible expenses. You don’t need an emergency fund for trips to the movie theater. You do need one for your mortgage or fuel to get to your work place.


34 posted on 01/10/2016 1:39:59 PM PST by DugwayDuke
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