How much should I be saving for emergencies only?

Dr. Michael Roizen, MD
Internal Medicine

I'm not going to get into the nitty gritty of telling you whether I believe investing in international stock is smarter than investing your life savings in some new-fangled company that makes silk pencils. Of all the financial decisions you will make over your life, this one is a no-brainer. Every time you get paid, take ten percent of that check and put it in an emergency account. It doesn't count for retirement, it's not used for bills, and it's not something you tap into when you decide that you really, really, really, really need an automatic lollipop maker. It's something that will give you peace of mind. Having an emergency backup account to use if the car dies, or your spouse needs someone to go with them to chemotherapy, or you need to go to a different job, or the roof leaks. this emergency account lets you take care of unforseen expenses and still enabling you to pay bills, save for retirement, and make investments. It will relieve your day-to-day financial stress as much as anything short of winning the Super Six.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.