Size of the Fund
The size of the emergency fund may vary based on individual circumstances, including job stability, family size, and other available resources.
Investment Options
The primary concern for the emergency fund is liquidity and safety rather than growth. algostocks
High-yield savings accounts and money market funds are popular choices because they offer easy access to funds and a relatively stable return.
Saving for a Major Purchase
Another short-term goal could be saving for a major purchase, such as a vacation, a wedding, or a down payment on a car.
Planning the Savings
Determine the total cost and the timeline for the purchase. This calculation will help decide how much needs to be saved regularly to meet the goal on time.