How much should we save in an emergency fund?

  The best way to deal with future financial troubles is to have a plan in place before they begin. I recommend having an extra five thousand (as a minimum) set aside for these expected but sometimes untimely scenarios. Health plan deductibles, car repairs, and home repairs are a few examples none of us like to spend money on. We don't want to borrow money or dip into retirement savings for these types of expenses. We run the risk of paying high interest on loans and not replacing retirement savings, not to mention a withdraw right before a market run up. I believe an emergency fund should be established before other savings vehicles. We will have less of a chance of getting stuck in the above examples. If five thousand is high for our current income levels, we can start with setting one thousand as a savings goal and try to repeat that plan five times. Finwiz.