If you have ever read about personal finance tricks for making sure you never runs out of money, you know it is suggested to keep three or more months of your estimated expenses available just in case God smites you for something.
So you might be thinking to yourself, well how much money is that really?
That is where I come in. You see I will do the fun research part for you and tell you fun tricks like this.
Bankrate.com, a quite well known site for money tips, put together an emergency fund calculator. The math is pretty basic. In fact it is really just involves taking the expenses of your major spending categories (rent/mortgage, food, utils, transportation, and debt) and multiplying each by the number of months you need to have saved up. Once you have all these, you would then add the new totals up. Although Bankrate doesn’t suggested it, but I have heard that others would add an extra, say, 15% to this value just in case your car breaks while you are out of work.
Good luck saving.