This week’s batch of reader questions focus on the fundamentals of personal finance: emergency funds, credit and banking.
1. Should people have more than a month in emergency funds?
2. What is credit?
3. What’s a good online bank?
4. Is online grocery shopping cheaper?
5. What exactly is a budget?
6. What’s the best first credit card?
7. What are premiums and deductibles?
Q1: Should people have more than a month in emergency funds?
I think your emergency fund suggestions are too small. People should have more than a month of money socked away in their emergency fund.
I agree with you. An ideal situation likely has every American family with at least a year of living expenses stowed away in savings. The problem is that we don’t live in an ideal world. Even before coronavirus, 80% of Americans lived paycheck to paycheck, meaning that missing a single paycheck would lead directly to mi… Read More