There is no substitute for having an emergency savings account, Suze says, especially after this most recent recession. Her New Rules for Saving require you to have real money tucked away – for eight month’s worth of living expenses – at a real federally insured bank or credit union. That is the only way you can be certain that you will be able to handle any of life’s unexpected “what ifs” and “uh-ohs.”
But let’s say you’ve been following Suze’s advice and you’re now wondering if your emergency fund is safe. After all, a lot has changed over these past few years. With bank after bank going under, you may ask if federal deposit insurance is foolproof. Could your accounts be frozen? How much of your money is protected and for how long?
To help you figure this out, Suze answered some of the most frequent – and important – questions her viewers have about emergency funds in her new book, Suze Orman’s Action Plan: New Rules for New Times. Whether it’s about credit unions, online banks or money market mutual funds, she breaks down everything you need to know about saving. So read on for her top tips. And when you’re done, check out the entire “Action Plan: Saving” chapter at suzeorman.cnbc.com.