Here’s an interesting finding: Among those who planned to make a financial resolution for 2023, the primary reason was the desire to build an emergency savings fund, according to a December 2022 study by research firm Morning Consult.
And it’s a good idea for everybody to build an emergency fund, which can help you prepare for large home or auto repairs, sizable medical bills, and other needs.
If you’re still working, you might want at least three to six months’ worth of living expenses in your emergency fund.
If you’re already retired, however, you may need well more than a year’s worth of expenses in this fund.
Where should you keep your emergency fund?
You’ll want it to be accessible, so it’s a good idea to keep the money in a liquid, low-risk account.
Of course, given the high cost of living, it can be difficult to put money away for emergencies.
Here’s one strategy: Have some money automatically moved each month from your checking or savings account into your emergency fund.
Make it a priority this year to build or strengthen your emergency fund. It will be worth the effort.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
