A step-by-step guide on how to calculate what you might need in the case of an emergency.
5 Steps to Build an Emergency Fund
You've figured out your goals. You know what they'll cost. So you've put all of your money into your investment portfolio. Then you lose your job. Where will you get money for food and rent? You don't want to dip into that investment portfolio. After all, you've built it with a particular goal and time frame in mind. Touch it now and risk making your future dreams unattainable. That's why it's important to set aside money in an emergency fund before you begin investing.Here are some pointers for what your emergency fund should cover, how long it should last, and where to put it.