Ask Terry Questions 6 months emergency funds

6 months emergency funds

By Terry Savage on August 30, 2019 | Chicken Money

Do monthly pensions influence the emergency funds? Should you have the necessary funds available to you regard less of your monthly pension income.

Terry Says

Good question.  Having a pension and SS check coming in are very helpful to cover basic expenses.  But what about emergencies — car repair, home air conditioning or furnace breakdown, or anything else that might come up.  That’s where “liquidity” really helps.  If you were living day-to-day on a paycheck, then yes, 6 months is the bare minimum — in case you lose your job.  But even with daily expenses covered, it is always good to have some “chicken money” in the bank!

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