Is an Emergency Fund Really Necessary?

Posted on April 30, 2007

I recently came across an insightful survey provided by the Pew Research Center concerning an emergency fund. Most people recommend having approximately three to six months of living expenses in a conservatively invested, yet accessible savings account. The survey concludes about a third of adult Americans said they had unexpected expenses in the past year that they were not prepared for and that financially stretched them. The top expenses that occurred were:

Medical: 34%
Cars: 24%
Home and housing: 20%
Life events/Children: 9%
Work-related: 3%
Travel/Vacation: 2%
Taxes: 2%
Pets/vet bills: 1%
Other: 9%

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