raaman
Valued Contributor
Those with irregular or commission-based incomes may want to save more amounts, like six to twelve months' expenses, since their income can vary widely. If you are single or the sole breadwinner for your family, erring on the higher end of the three to six month range provides more protection. Don't shortchange your emergency fund to pay off debt faster.
The emergency savings initiative should take priority over extra debt payments. The exact number depends on your specific situation, but most financial planners advise having a dedicated emergency fund that can cover basic costs for several months ahead of time if your income is disrupted. Therefore, building it up over time provides important financial security for you and your family.
The emergency savings initiative should take priority over extra debt payments. The exact number depends on your specific situation, but most financial planners advise having a dedicated emergency fund that can cover basic costs for several months ahead of time if your income is disrupted. Therefore, building it up over time provides important financial security for you and your family.