Course 104: Building Your Emergency Fund
How To Estimate What You'll Need
In this course
1 Introduction
2 What to Include
3 How To Estimate What You'll Need
4 How Long Should It Last
5 Where to Put the Emergency Fund

That's a long list to compile and come up with hard numbers for. The good news is that you don't have to try to brainstorm every conceivable expense.

Instead, track what you spend in the next few months and use that as your baseline. Then add in any other possible expenses, such as taxes or finding a job, that didn't pop up during those months.

If you spent money on movies or your health-club membership, include that. If you're out of work, taking in an occasional flick and working out may help relieve some of your stress.

Next: How Long Should It Last >>


Search
Print Lesson |Feedback
Del.icio.us Del.icio.us | Digg! digg it
Learn how to invest like a pro with Morningstar’s Investment Workbooks (John Wiley & Sons, 2004, 2005), available at online bookstores.
Copyright 2015 Morningstar, Inc. All rights reserved. Please read our Privacy Policy.
If you have questions or comments please contact Morningstar.