2. You should invest against expenses and emergencies that may appear in the future
“It’s not very sexy, but the next question to ask is: Do you have a nice emergency fund?” says Meyer. Preferably, you should save three to six months of living expenses in fairly liquid savings, but your refund itself—at about $3,000—can save you from a potential threat.
Having that amount of money stashed in a savings account means you don’t have to put a new transmission or unanticipated medical bill on a credit card. Returns on savings accounts are minimal, but that’s beside the point. An emergency fund’s purpose is to be there when you need it most.
