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Here's how to know exactly how much money you need in your emergency fund

Here's how to know exactly how much money you need in your emergency fund
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The first step to any sound financial plan is setting up an emergency fund.




You should have between three and six months worth of expenses saved in an emergency fund, depending on your household income.




The best place to save an emergency fund is somewhere easily accessible, like a high-yield savings account, where there's no chance of losing your money and interest payments can give you a small boost to your savings.




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It's no secret that Americans struggle to save.
Whether it's because wages are low, debt repayment consumes our paychecks, or we're overspending, nearly 60% of Americans have less than $1,000 saved, according to a GoBankingRates survey. Most of that group has $0.
As a certified financial planner in training, I've learned that the No. 1 step to a sound financial plan is setting up an emergency fund. Before aggressively saving for retirement or investing, the very best thing you can do for yourself is build up a cash reserve.
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