The New Money Rules: Tips to Hook Up Your Finances
Your "Life Happens" Fund
In the past, financial experts have pushed the idea of building an emergency fund...
In the past, financial experts have pushed the idea of building an emergency fund to help with long-term expenses when life’s unexpected events occur. Emergency funds can go towards the big stuff like getting laid off, medical expenses or major home repairs. But today’s experts say you should also start a “life happens” fund for those short-term problems like getting your car fixed or a broken dishwasher.
QUICKTIP: “An extra savings account with $1,000 to $2,000 should cover ‘life happens’ mishaps," says Michelle Singletary, author of “The Power to Prosper: 21 Days to Financial Freedom.”