I have been setting aside a small amount of $ each month for a rainy day fund. It's all going into a government-backed, but low-interest account.
Is there a rule of thumb as to how much I should have in there in terms of monthly expenses? I've gotten a lot of contradictory advice.
The fund I'm creating will be used in case I, say, get hit by a car and can't work, or someone breaks into my apartment and steals a lot of valuables, etc.
- I live alone.
- My parents and close relatives can take care of themselves physically and financially.
- I do not have a wife, kids, mortgage, or debt of any kind.
- I am self-employed and thus do not get paid if I don't work.
- I'm in good health.