#111: Is $1000 a big enough emergency fund?

Join Josh and Emily to discuss whether $1000 is a big enough emergency fund…and more specifically, how to determine how much of an emergency fund you actually need. Top takeaways: $1000 is a truly arbitrary number. It hasn’t changed in decades and isn’t based on income or expenses. In order to determine a good emergency fund benchmark, you have to figure out what your emergency fund should cover (medical bills? Job loss? Home repairs? etc.) 3-6 months is common, but that’s a HUGE range. All rules of thumb are, by definition, wrong. In a true job-loss emergency, the goal should be to keep things status quo, not have to cut everything else. “New tires” should not be an emergency–it should be predictable. Want help building or growing a successful financial coaching business? Find resources below based on where you’re at in your journey: Deciding whether Financial Coaching is right for you? Join our free Facebook Community with over 5000 current and aspiring financial coaches! https://www.facebook.com/groups/financialcoachescommunity Already decided you’re going to be a Financial Coach and want to learn more? Get 30+ tips and best practices in our free 8-part email series! https://www.financialcoachesnetwork.com/pre-launch-email-series Ready to Launch your Financial Coaching business? Join FCN Launch, our step-by-step program that will help you successfully launch your business in four months and grow it to a consistent part-time income. https://www.financialcoachesnetwork.com/launch Looking for financial coaching software? Sign up for the interest list for FCN MoneyCoach, the premier cash flow analysis software for financial coaches and advisers. https://www.financialcoachesnetwork.com/money-coach Are you already coaching clients and want to grow your business to a full-time income? Join FCN Grow, our program that helps you scale your business to a full-time income. https://www.financialcoachesnetwork.com/grow