Life is unpredictable. Have at least 6-8 months of living expenses in an emergency savings account before you decide to buy. If by chance you lose your job or face a major expense (e.g. car is shot) after you buy your home, you'll rest easier knowing you have a reserve fund to keep you and your house afloat until things get sorted out financially. Banks aren't necessarily as forgiving as a landlord if the bottom drops out and you can't make a mortgage payment.
Financial expert Gail Vaz-Oxlade covers emergency fund 101 here.
0 comments:
Post a Comment