Advertisement
If you had an unexpected expense or suddenly lost your job, how would you support yourself? See how an emergency fund could help.
An emergency fund is a sum of money saved to cover major expenses, such as unexpected repairs, medical expenses or household bills, in case you lose your main source of income. Having an emergency fund allows you to avoid using your retirement savings or turning to high-interest debt options, like credit cards or payday loans, to make ends meet.
Experts recommend saving a set amount each month until you have enough to cover three to 12 months of household expenses, depending on your situation and profession. However, the more you can save, the better off you’ll be should you need to access this money. Emergency funds should be easily accessible, so don’t put them in a registered retirement savings plan (RRSP). Instead, try a high-interest savings account or a tax-free savings account (TFSA).
Example: “My fridge broke, but I had enough money in my emergency fund to get it fixed.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
You’ve reached your 40s, are mid-way in your career and realize you’ll never have a pension. Here’s how to...
Reverse mortgages do the job of freeing up income for house-rich, cash-poor Canadian seniors. But their terms are often...
The inflation reading gives some economists more confidence that the Bank of Canada will cut its benchmark interest rate...
Many parents loan or gift money to their adult children for real estate purchases. Here are the legal and...
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
Falling U.S. inflation leads to rate cut certainty, Walmart’s strong quarter, Barrick beats Franco-Nevada for the gold metal, and...
Cards that waive or refund the fee for foreign currency charges are few and far between—but if you’re a...
