How To Make Your Emergency Fund Too Big

How Big Should Your Emergency Fund Be?

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Your emergency fund should be large enough to cover three to six months of living expenses

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Too much in cash, not enough invested

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You might be tempted to keep your emergency fund as cash, but this is a bad idea. Cash is not a good investment and it’s even worse as an emergency fund.

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You will never get the return on your money that you would from other investments like stocks or bonds, so there’s no point in having any at all.

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