The words written here are true, but imagine if you will, you are living on 80% of your net income for expenses, you are saving 10%, it takes 24 months to set aside 3 months worth of expenses. All goes well, except for that morning ambulance ride and several thousand dollars of deductible and uncovered medical bills. Good thing you had all that money set aside, right? However, your immediately available emergency reserve is now severely depleted, it will take many months of savings to get it back to safe level
The words written here are true, but imagine if you will, you are living on 80% of your net income for expenses, you are saving 10%, it takes 24 months to set aside 3 months worth of expenses. All goes well, except for that morning ambulance ride and several thousand dollars of deductible and uncovered medical bills. Good thing you had all that money set aside, right? However, your immediately available emergency reserve is now severely depleted, it will take many months of savings to get it back to safe level