Should I Put Money Aside for My Retirement or an Emergency Reserve?

Many Americans seem to be in the situation where they are not sure whether to set cash aside for emergencies or if they should put that money into their retirement funds–because they sure can’t do both at the same time without struggling.

Unfortunately, there have been studies that show that we do not have spare money to cover unexpected costs. The same can be said about people not having any retirement savings.

Financial professionals advise that you should have enough money to be able to pay for your expenses for the duration of at least 3 to 6 months. This amount of money set aside would be quite handy if you ended up not being able to work for unforeseeable reasons.

When it comes to retirement savings, many advise that your portfolio should have more than one million dollars when it comes time for you to hang up your career hat.

However, from the standpoint of the individual that has no savings for emergencies or retirement, which should they save up for? This article will go over some matters to consider so that you can come up with the right conclusion to what should be done.