Emergency funds are something I don't see mentioned very much outside of "only invest what you can afford to lose". While it is good advice, it is very possible that we experience a recession in the near future and having an emergency fund is really important right now.
For those who don't know what an emergency fund is, it's essentially a sum of money (yes, FIAT) that you set aside for large unexpected expenses such as job loss, unforeseen medical expenses, etc. I know current prices are tempting to just buy crypto but if and when we go into a recession, it's better to be safe than sorry.
The amount that you should put into an emergency fund is different for everyone and depends on what kind of support you would have if something happened. I generally stick to having enough stashed away to support myself for at least 3 months but depending on your situation, you may want more.
I know it's hard enough to set aside any money with prices being so high right now but having an emergency fund is more important than buying the dip.
Submitted July 09, 2022 at 10:42PM by nick83487 https://ift.tt/sq53g6r https://ift.tt/rncoQu3
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