Expecting the Unexpected

Do you have an emergency fund? If so, you’re in the smart minority. Just 40 percent of Americans have such a fund, according to a new Consumer Federation of America survey. While higher income households are most likely to have an emergency fund, even among the highest earners more than 40 percent said they do not maintain a separate emergency fund.
h3(matt). Matt’s View
p(matt). An emergency fund is a foundational element of wise money management. Having money in reserve keeps stress low and is a powerful preventative for credit card debt. Today, money market mutual funds from brokerage firms such as and are paying five percent interest. That’s a great rate for safe, easily accessible money. However, you’ll need an initial deposit of $2,500 to $3,000. If that’s more than you can afford, start with your bank’s savings or money market account and then transfer to a higher yielding money market mutual fund once you have enough for the minimum deposit. A good rule of thumb is to keep at least three months’ worth of living expenses in such a fund, preferably more.