Personal finance expert Suze Orman had some great advice to share when it comes to how much emergency money you should have on-hand.
“I always like to have at least an eight-month emergency fund,” she said. Suze recommends looking at your monthly expenses for payments like rent, mortgage or utilities and then multiplying that amount by eight to have enough emergency money saved up.
Suze recommends the number eight here, as that is the average number of months it usually takes to find another job in the case of unemployment. She also recommends cutting back on luxuries like going to movies or eating out at restaurants if you are anticipating a big change in your income.
Get one on one financial advice from Suze here.
For more advice on managing your money, see Suze's personal finance tips:
Add Marlo On Facebook:
Follow Marlo on Twitter:
Sign up to receive my email newsletter each week - It will keep you up-to-date on upcoming articles, Mondays with Marlo guests, videos, and more!