How large should an emergency fund be?

Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Before You Start Investing: Why You need an Emergency Fund

23 Aug 2024 · 1 min

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0:39

A short YouTube video (by Ndubuisi 'Andy' Egwim) explaining what an emergency fund is and why it matters before you start investing. The speaker defines an emergency fund as roughly three to six months' worth of typical monthly expenses, describes it as a financial fallback that reduces stress and worry when income is interrupted, and frames it as a preparatory step before investing.

Questions this video answers

Three to six months of typical monthly expenses.

Chapters

What do you mean by emergency fund? So it's, you know what? If anything were to happen, you have up to three to six months of your expense. You know, expenses that one usually makes per month. Three to six months at least saved up in the event of an emergency where you're not working for some reason. So it gives you like the. The fall back. Yeah, it removes the unnecessary stress. Also our worries. So because you know that there's something there while you're trying to rearrange and prepare for the next move for yourself.