Handling
the Unexpected: Expect the unexpected
There's nothing harder to plan for than the
unexpected. Many times the
emotional impact is hard enough to handle without
financial uncertainties.
The key to successfully surviving
these life-changing events, financially at least,
is to anticipate
hard times, shore up your financial
situation now, and give yourself some breathing
room.
Build an emergency fund to
get you through the rough
times. You'll need three months'
living expenses as
a minimum, more
if your industry is subject
to prolonged layoffs.
Set
money aside every month.
But unlike retirement savings,
keep your emergency savings
fairly liquid, in a savings
account or a money market fund. Hopefully
you will never need it.
But if you do, you'll be glad it's there.
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