How often should I reassess my emergency fund?

How often should I reassess my emergency fund?

It's recommended to reassess your emergency fund at least once a year, or whenever your financial situation changes.

What factors should I consider when reassessing it?

Consider changes in your income, expenses, family size, and any major life events like buying a house or having a child.

How much should I ideally have in my emergency fund?

A common guideline is to have three to six months' worth of living expenses saved in your emergency fund.

What if I have more than that saved?

If you have more than six months' worth, you might consider investing the excess for better returns, depending on your comfort level.

Can I use my emergency fund for non-emergencies?

It's best to reserve your emergency fund for true emergencies to ensure it's available when you really need it.