Remember to Include These Costs in Your Emergency Fund.
If you ever lose your job, an emergency fund will help you stay afloat while you look for a new job. However, there are some additional costs that you will have to pay if you lose your job. Be sure to budget for these when you set up your foundation.
Most experts say that in the event of an emergency, you should save at least a few months on your life. However, as Motley Fool points out, it’s easy to miscalculate how much you’ll need.
For example, if your employer pays your premium, be sure to factor in the additional costs of paying for your own plan if you lose that benefit. According to Motley Fool, the average premium for one-time insurance in 2015 was $ 521 per month. Your job may offer other benefits, such as travel compensation.
Fool also notes that your communication costs – mobile phone and internet services – can be more expensive when you’re unemployed. For example, you may need more minutes for telephone interviews, or you may need a better internet plan for your home.
These are just a few examples and they suggest more at the link below. In general, however, you should think about what benefits you will lose and what additional costs you will incur while at home.
Are you forgetting to save on these three things? | Motley fool