Nearly half of Americans who lose their jobs experience financial hardship because they have not created a sufficient emergency savings fund, according to a new report.
Consumers should have three to six months of monthly expenses in a savings account or money market fund, Kimberly Clouse, chief client advocate at Covestor, tells MainStreet.
“Everyone should create an emergency fund, and it’s even more critical for entrepreneurs and other earners who may not have a steady income,” she said.
“An emergency fund allows you to use cash to pay for those random expenses or emergencies that arise in your financial life, instead of creating more debt or tapping into long-term investments. You want to be able to tap into these funds easily, but you don’t want to tap them unless you really need to,” Clouse added.
Read the full article at MainStreet.
