NFL linebacker Brandon Copeland said, “A healthy emergency fund typically includes three to six months’ worth of salary or living expenses, but we always assess the situation and plan to spend as much as reasonably possible. (Copland himself reportedly saves most of his paycheck.)
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NFL linebacker Brandon Copeland made $990,000 in the NFL last year, according to CBS Sports, but that’s far from his most attractive point. He has also built a financial empire called Copeland Media, where he serves as CEO and oversees a company’s financial consulting firm called Cascade Advisory Group. While at the University of Pennsylvania, he did an internship at UBS before returning to his alma mater to teach a financial literacy course. And two years before him, he added his Kiplinger contributing editor to his resume.
With a recession looming and some savings accounts making more payments than they’ve had since 2009, one of his pieces of advice feels especially relevant now. See here for maximum interest rates for savings accounts). Here’s what he advises in that regard and what other experts are saying:
“A sound emergency fund usually includes three to six months of salary or living expenses, but as always, you should assess your situation and save as much as reasonably possible. Yes,” says Copeland. (Copland himself reportedly saves most of his salary.) He says the emergency fund can help in cases like health problems, unemployment, or paying off debt. .
What the Pros Are Saying About Emergency Funds Now
Danna Jacobs, a certified financial planner at Legacy Care Wealth, agrees that an emergency fund for three to six months’ expenses is an important foundation for sound financiers. “We typically allocate these savings to high-interest savings accounts so our clients can earn a little more with these funds,” she says. See here the best savings account rates you can get today. See here the best savings account rates you can get today.
If you’re a dual-income household, Jacobs says, you can usually qualify for a smaller emergency fund because you have additional income to support potential unemployment. If you don’t have a stable job or have only one income, you may want to save more.
Keith Spencer, Certified Financial Planner at Spencer Financial Planning, said: It’s better to decide you have too much cash than not enough cash.
If the recommended reserve amount seems unattainable for your household, Paul Collinson, Certified Financial Planner at Legacy Planning Advisors, recommends dividing the amount into achievable parcels. “Perhaps we aim to build up a monthly reserve every three to six months until the recommended number of months is achieved. It’s important to hold families accountable when setting ambitious goals, such as when building,” says Collinson.
Also note that this number can be fluid. Future Perfect Planning’s Certified Financial Her Planner, Cristina Guglielmetti, said:
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