During the coronavirus pandemic, our health concerns — for ourselves and our loved ones — have been at the top of our minds. But financial worries have been there, too, both for people whose employment has been affected and for investors anxious about the volatile financial markets. And one aspect of every individual’s total financial picture has become quite clear — the importance of an emergency fund.
In normal times, it’s a good idea for you to keep three to six months’ worth of living expenses in a liquid, low-risk account. Having an emergency fund available can help you cope with those large, unexpected costs, such as a major car repair or a costly medical bill.