• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Mullooly Asset Management

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Our Fees
  • About us
  • Schedule a Meeting
How much money should be in my emergency fund?

How Much Money Should Be in My Emergency Fund?

July 3, 2013 by Thomas Mullooly

https://media.blubrry.com/invest/p/content.blubrry.com/invest/Financial_Safety_Nets_Podcast_July_2013.mp3

Subscribe: RSS

In this week’s Mullooly Asset Management podcast, Tom and Brendan discuss a question they hear a lot. The question is, “How much money should be in my emergency fund?”. Tom was inspired to talk about financial safety nets this week because of a New York Times article that Barry Ritholtz suggested checking out. The article contains a savings calculator, and you can check that out here. Many people today are operating without any sort of financial safety net or emergency fund, and this is a big mistake.

Everybody has been through a rough patch financially before. Tom stresses the point that you can be one step closer to avoiding financial troubles if you build a bigger emergency fund. Whether you want to refer to it as a rainy day fund, financial safety net, or emergency fund the point is that you need one. If you don’t have one, you might want to delay that big purchase or vacation for six months to a year. Tom reminds everybody that it wasn’t raining when Noah built the ark. Don’t wait for disaster to strike, be proactive. When you have some money in the bank to reassure you, it can really change your perspective on life.

Now that the point of having an emergency fund has been stressed, we’ll get to the question of, “How much money should be in my emergency fund?”. Tom suggests that everybody have a minimum of three months expenses in their financial safety net. This means that before you invest any money or make any large purchases, this money should be saved. Some people have expressed that they feel more comfortable with six months of expensesHow much money should be in my emergency fund? saved. If you want to save a year’s worth of expenses in your emergency fund that’s okay too! The only thing that is not okay is not having an emergency fund.

So really the answer to the question, “How much money should be in my emergency fund?”, is at least three months of expenses. Anything more than that is great. Anything less than that is risky and not recommended. Learn more about emergency funds in this week’s Mullooly Asset Management podcast.

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Financial Planning, Podcasts Tagged With: emergency fund

About Thomas Mullooly

Thomas Mullooly is owner and founder of Mullooly Asset Management, Inc. In 2002 Tom opened Mullooly Asset Management, a fee-only investment advisory firm. As an investment advisor, and not a broker, Tom works strictly for his clients. With the help of point and figure charting, Tom builds a realistic game plan for clients.

Footer

2052 NJ-35, Suite #203
Wall Township, NJ 07719
Phone: (732) 223-9000
Fax: (732) 223-9600
Email: support@mullooly.net

  • Privacy Policy
  • Disclosures and Legal Disclaimers

Useful Links

  • Contact Us
  • Client Login
  • Pay Bill Online
  • About us
  • Our Fees
Text Example

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Resource Center

  • Videos
  • Podcasts
  • Blog

Copyright © 2021 · Design by :- Eliza Jack