Emergency Fund Is Too Small

An emergency fund is supposed to give you peace of mind. But if your savings account isn’t large enough to handle life’s surprises, it may be providing a false sense of security.

Many people assume that having any amount saved means they’re prepared for emergencies. Unfortunately, unexpected expenses don’t care how much you hoped to save. A car repair, medical bill, or job loss can quickly expose the cracks in a small emergency fund.

If you’re wondering whether your emergency savings are enough, here are seven warning signs that your emergency fund may be too small.