How Big Should Your Emergency Fund Be?
Consider these levers to better size your own emergency fund, says HelloWallet consumer-finance expert Aron Szapiro.
Saving for emergencies should be a financial priority for anyone, but what's the smartest way to do it? Morningstar.com assistant site editor Adam Zoll recently discussed this topic with Aron Szapiro, a consumer-finance expert for HelloWallet, a Morningstar company. Szapiro recently conducted research on the swing factors that impact how much investors may want to save for emergencies.
Adam Zoll: For years, financial planners have told their clients they should have three to six months' worth of spending saved in an emergency fund. What's wrong with that basic approach?