The Mini Emergency Fund

Most experts agree that people need from 3 - 6 months saved in their Emergency Fund. This certainly is good advice, however, I think folks would find it daunting to save such a large amount. 

According to my Emergency Fund Calculator, my 3-month Emergency Fund has been calculated to be $8,400. With that being fact, my one month Emergency Fund would be $2,800. Even that seems large for some poeple to save, so I'm going to break it down per day, with 30 days being the average, which will be  about $93.33 per day x 7 days.  

I would need a minimum of $653.33 (Approx,$700)  in my mini emergency fund for small emergencies, 1/4 of your monthly amount. I would recommend keeping the 1/4 amount in cash at home and the remainder in a money market account.

Today's lesson is  . . .
Emergency Funds can be broken down into smaller amounts and can  come in different sizes, (mini) small, medium, and large.

Note: Should you keep your Mini Emergency Fund at home in an envelope? NO. 
American Express has a very cheap debit card that can be used for this purpose.