Emergency Funds: Why Everyone – Even High-Income Earners – Should Have One
There’s a Reason so Many Experts Recommend this Safety Net
We’ve all heard the prevailing wisdom that everyone should have an emergency fund, but is it necessary for physicians, lawyers, and other high-income earners? This is a bit of a divisive question, with some financial experts continuing to push the dogma of having a cash reserve of at least three months’ salary set aside somewhere, and others making a sophisticated argument that an emergency fund doesn’t truly serve high-income earners.
It’s true that not every person’s financial needs are the same, but it’s still important for everyone to build and maintain an emergency fund regardless of income or assets.
Wherever you are in your career and financial journey, having a cash reserve set aside for a rainy day serves three important purposes.