Paul Herd - Head of Origination for Private Equity Funds and Head of UK & Ireland Corporate

  Paul Herd | Nobody can predict when an emergency will happen. An emergency could be anything from your air conditioning unit at your house going out to breaking your foot and needing surgery. No matter what the emergency is, it will cost you money to fix. An emergency fund is an amount of money set aside to pay for any emergency that happens in life. If you do not have money set aside in an easily accessible account, emergencies can cause stress, debt, and sometimes even foreclosure or eviction. Do not fall prey to the thought that you can cash flow emergencies. What happens if you lose your job and your car breaks down at the same time? Paul Herd | How much? When determining the size of your emergency fund, you want to think of the worst emergency that could possibly happen to you: losing your job. Therefore, a general rule of thumb for an emergency fund is to save between three to six months of expenses. To figure out your monthly expenses, add up all of your unavoidable mont...