Having a strategy for how to pay for emergencies is a key part of personal finance. Understanding that an emergency account can also help move you forward with a more comprehensive financial strategy. As you can see from the accompanying chart, households appear to be committed to saving for a rainy day. Checking accounts and currency held by households is just a tick over $4 trillion, a steady increase from less than $1 trillion in 2019. |
A comfortable amount of money in an emergency fund largely depends on a family’s situation. The fund can help pay for unexpected expenses, but it may also be flexible enough to cover other short-term needs. The important concept is to have a strategy and to understand the role the account plays. There are no incorrect answers to rainy-day fund questions. The only wrong answer is to go without an emergency expense fund, at all. |
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.