Saving, Managing Debt, and Budgeting
What is a “cash cushion”?
A cash cushion is a special savings that you may cover three months to one year of your expenses. The amount you need to accumulate depends on knowing your current expenses. The amount you need to save is also dependent on your ability to find another job should you abruptly change employers, which may be several months, or even years. So it is good to plan accordingly.