What Is A 6-Month Emergency Fund? – FAQ

Simply put, a 6-month emergency fund is a source of money to cover six months of living expenses(rent/mortgage, food, car care, etc.) should you lose your regular income.

Your monthly expenses after losing your job, or income, should only be necessities. If you lose your job, you should use something other than our emergency fund for luxury items like cable tv, vacations, or eating out.

Is A 6-Month Emergency Fund Big?

Well, most emergency funds are used for over 3 to 6 months of household expenses after losing your income. 6-months is just the top of the recommended amount of money you should have saved away.

The 6-month emergency fund option gives more peace of mind, and some jobs are more challenging to replace than others.

Saved money for a rainy day, change in a jar.  6-Months Of Emergency Fund expenses starts out as simple savings.

So is a 6-month emergency fund too big? Not for me, I work in a professional field, and If I lose my job, it’s serious. I might have to think about changing careers, getting a new job, and getting up to speed with recovering my lost income; six months might be suitable for me.

Suppose you have a job where you can quit and get another job immediately without suffering any financial loss. A 6-month is a little large for you.

What’s the first word in Personal Finance?

Yup.

Tom, Growing His Passive Income Generators.
Myself with an interesting Bull Sculpture.
Notice: No Lambo’s. :/
Hi I’m Tom, A Blogger And A PIG Farmer.

PIG Farmer as in I grow Passive Income Generators(PIG’s).

I’ve been playing with stocks, mutual funds, and options for decades, as well as always working on my side hustle stacks.

Unlike what you read online, I’ve yet to find a way to get rich quickly. Get Rich Quick isn’t happening for me.

My journey has been long and continues. I hope to have so many PIGs I can stop working at my current job and volunteer as a medical worker overseas. 

Still waiting, but getting there. I still am a family man, and while on this Journey of Growing PIGs.  

I wanted to share my adventures(ups and downs), hoping you will contribute with your feedback and comments.

Fun Fact: In my spare time, I am a Band-Dad!

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