The one question which everyone asks themselves most of the times is How many funds do I need in emergency cases? And If you’re also one of those guys then congrats for thinking about your future. There are many ways through which a person can make their future bright and secure but how much money is good?. Well, a person’s requirement of an emergency fund depends upon the individual themselves because an average American will be getting their IRA when they will touch their late 60s and 401k is enough amount for rest of the life. Still, some people would want their future more secure than anyone else. One of the best ways to make sure that you will have plenty of amount in need is to keep investing in bonds, shares and other lucrative assets which have the potential of giving long term returns.
However, creating an emergency fund by investing in stock market is also risky because there has been some occasion where the country got hit by the recession and many people even lost their pensions and emergency fund also. However, if you get a good amount of cash reserve and invests remaining amount into the right type of stock or bond then you might not have to worry about the next recession or stock crash because you will be safer than another American who doesn’t have as much as cash you have got with yourself. The pensioners who can’t work because of their lack of physical activity shall opt to choose the investment as their best way to make their future more secure.
However, there is no guarantee that your emergency fund will be enough for you and hence it’s the subjective thing that how much money you need for your emergencies.