|Course 104: Building Your Emergency Fund|
|What to Include|
Don't assume that any future unemployment insurance payments can take the place of an emergency fund. Think of collecting unemployment as a way to strengthen the safety net you're constructing. It shouldn't be your sole support. And if you do collect unemployment, your emergency fund simply will last longer.
We recommend that you cover all conceivable expenses in your emergency fund.
Food and Shelter
Unless you're ready to move into your brother-in-law's basement, be sure to cover your rent or mortgage payments, too. And don't forget utilities--gas, electric, water, phone, and even cable and Internet.
Insurance and Health
Insurance premiums are often the first things to go when money gets tight. They shouldn't be. One of the quickest roads to penury is to let your health insurance lapse and to find yourself with a serious health condition.
Set aside money for routine dental and eye care, for prescriptions, and for any other health expenses your insurance doesn't cover. Once again, if you have pets, put their vet bills on the tab.
Finding a New Job
Next: How To Estimate What You'll Need >>
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