If you have searched the internet about Financial Freedom you have come across the concept of Emergency Funds. Ideally, this is around 3 to 6 months of your monthly income or expenses.
An Emergency Fund is an amount of money that you set aside in case you lost your income. It also acts as a buffer to avoid touching savings or investments during emergency expenses.
Most of the books and internet articles we read says that it should be based on monthly income, there are a few that says it should be based on Monthly Expenses.Continue reading Why our Emergency Fund is based on Monthly Expenses, not Monthly Income