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Published: Aug 04, 2022 5 min read
A One Hundred, Five, And One Dollar Bill Inside A Miniature Life Preserver
Money; Shutterstock

Are you really ready for a rainy day?

Prices are rising at their fastest rate in 40 years. We may be headed for a recession, or we may already be in one (it depends who you ask). The stock market is still in bear territory, well below the soaring highs of the last two years. Companies in certain industries are starting to lay off workers, too.

The headlines may sound scary, but they’re also a good reminder to revisit your emergency fund — the pile of cash you keep socked away for unexpected expenses like a car repair, medical bill or job loss. Experts generally recommend keeping between three and six months' worth of expenses in an account separate from the rest of your money in case of an emergency, though the exact amount will vary depending on your individual circumstances.