Monday Morning Money Minute
Posted by Mark Matney of Holcomb Law, PC Newport News, VA
www.matneylawpllc.com
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Monday Morning Money Minute
Moving on to financial baby step #3: Expand your initial emergency fund until it covers 3-6 months of expenses. Note the focus is covering your expenses, not necessarily covering your monthly income. Use your budget to determine what it would take to pay all monthly bills for 3-6 months. This would certainly prepare you for a major expense. The focus, though, is to protect against more serious setbacks, such as illness or job loss. This money is designed as savings instead of investment, so it belongs in a money market account instead of the stock market.
