This is your

Episode 1279,

Everything You Need to Know about Emergency Funds

by Michelle Schroeder Gardner

of Making Sense of Sense.com

And I'm Dan, I'm your host,

and this is where I read to you from some of the best blogs on personal finance every single day, including weekends and holidays.

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Everything you need to know about Emergency Funds by Michelle Schroeder Gardner of Making Sense of

of Sense of Sense.com

An Emergency Fund is something I believe everyone should have.

However, according to a report by bankrate.com,

26% of Americans have no emergency fund whatsoever for when they need money fast.

According to this same report, only 40% of families have enough in savings to cover three months

of expenses, with an even lower percentage having the usually recommended six months worth of savings.

This is frightening to me as having an emergency fund can greatly help a person get through tough parts in life.

For us, we have a 12-month emergency fund. I've always been open about this. I am a rather

big warrior about things, and having a large emergency fund gives me peace of mind, especially

since we're self-employed and our income can vary from month to month.

Even if you aren't self-employed, there are many other reasons to have a fully funded emergency

fund.

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