Not Creating an Emergency Fund
Given that countless Americans struggle to produce $400 to pay an unexpected bill, everyone should have an emergency fund to prepare for an unexpected bill or income loss, said Klingler, director of wealth management for GEBA.
“A good baseline is three to six months of expenses in liquid cash,” Klingler said. “Studies show personalizing your accounts by naming them according to your goal is highly effective. We are more likely to contribute to a vacation fund or new car fund or emergency fund versus a nameless string of numbers.”
