The 3-6-9 Guideline for Emergency Savings

The first step in preparing for unexpected financial emergencies is to start a saving’s fund. Following the initial investment it is encouraged to save up at least a month’s worth of wages for a bit more of a safety net. After that, take a moment to determine whether or not your current situation requires that you need to put away even more for a greater sense of financial security.

To further bolster the protection you should save up enough money to equal six months of pay if you either have a mortgage to pay for your home or have kids living with you. Lastly, some people may feel the need to put away even more money depending on their situation. Freelance workers or those with not so stable pay month to month may find greater stability in putting away nine months worth of pay.

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The 3-6-9 Guideline for Emergency Savings

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