Why you may not need an emergency fund

Why you may not need an emergency fund

Paying down your mortgage could be better than stashing away cash.

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Many experts suggest saving six months of living expenses for emergencies like a job loss. But, says Toronto fee-only planner Jason Heath, if you’re in a stable household it makes more sense to use that money elsewhere, and open a home equity line of credit to draw on in the event of a crisis. Consider what happens if you take $20,000 in emergency fund money from your high-interest saving account and instead apply it to your mortgage.

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