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Your investments are meant for long-term compounding. If you lose your job or your car breaks down, the worst thing you can do is sell your stocks at a loss. This is why you need an Emergency Fund.
The 6-Month Rule
A pristine emergency fund contains exactly 6 months of your bare-minimum living expenses in a liquid High-Yield Savings Account (HYSA).
Survival Math Calculation:
Exclude restaurants, vacations, and investing. Calculate only Rent, Groceries, Insurance, and Utilities.
If your survival expenses equal $3,000/month, your Emergency Target is $18,000.
Next Action Steps
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