Question 1

How much should I have in an emergency fund?

Accepted Answer

Most financial advisors recommend 3-6 months of essential expenses. If you have a stable job, 3 months may be enough. If you're self-employed, a contractor, or have variable income, aim for 6-12 months. Essential expenses include rent, food, utilities, insurance, and minimum debt payments.

Question 2

Where should I keep my emergency fund?

Accepted Answer

Keep your emergency fund in a high-interest savings account that you can access within 1-2 business days. Don't invest it in shares or lock it in a term deposit — the whole point is immediate access when you need it. Current high-interest savings rates are around 5%.

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