If you’re saving up your full emergency fund, that means you’ve already saved up your mini-emergency fund (the $1,000) and you’ve paid off all your consumer debt!
Now, with all of your newfound cash flow each month, it’s time for you to put that money straight into a savings account for your FULL emergency fund.
Most experts say you should have 3-6 months’ worth of expenses in your emergency fund. So, if it costs you $3,000 a month to live, then you should have a savings account that’s somewhere between $9,000-$18,000.
It’s a lot of money, but it’s necessary if you want to be secure in your financial journey.
I admit, this isn’t the most exciting step, but when your car breaks down or when you have an unexpected medical emergency, you’ll be glad it’s there!
Want to learn more about building up your full emergency fund?
Check out the helpful posts below!