Is it possible to have TOO MUCH in savings? Would it surprise you if I answered YES???
If you've accumulated an emergency fund of more than six months of savings (or nine months if you're self employed or your income is sporadic), you shouldn't continue to add to your emergency fund just to pad it.
Wait, what??? Shouldn't I continue to save money? Absolutely, but not in your emergency fund. Typically, your emergency fund will be held in some sort of savings account that generally yields lower interest growth, if any. Instead, you need to work on maxing out your 401K, SEP, IRA, and/or Roth. Once you are maxed out and funding college saving for any children, you can then consider exploring other investment options.
Some investment options include mutual funds and real estate. There are many variations for each, but you have to decide what works best for you and your family. #Finhacks #financehacks #mutualfunds #emergencyfund #retirementsavings #realestate
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