what is a good amount of money to put aside as emergency money??

Question

I am 27 and single.

Answer 1

$50

Answer 2

I'd say try to figure out what it takes for you to live on bare bones for three months- car, insurance, rent/mortgage, utilities, gas, food, etc... and then multiply it by three. This can be a lot of money so beware. I'm 28 and we (my husband and I) just save everything we don't spend in a month "just in case". An emergency always comes up from the car breaking down, an emergency room visit, an unexpected trip to the vet...remember...when you have "emergencies" you don't have to always pay the whole amount either, you can usually make a payment plan with no penalty so you don't have to deplete your emergency fund right away. It's hard to save up $6,000 or $8,000 right away, truthfully it's almost impossible nowadays. Just be wise with your money and always have a back up plan, even if it's having a friend you could move in with or even with your parents if you had to in an "emergency" (I know it sounds dreaded but there are worse things, believe me!).

Answer 3

There ae a few schools of thought on this and it depends what you call an "emergency".

If you are talking about emergency money for cabs, late paycheques, medical emergencies - try $100.00.

The rule of thumb, though, is that you should have enough in your savings account to live for 3 months with no job. That sounds like a lot, but it makes perfect sense - what if you are ill, or your company closes or you get let go? To find an equal job, or to heal after injury, you will need at least three months, with out the added stress of worrying about rent, food, car payment, etc.

Hope that helps you.

Answer 4

I suggest you work out a budget of your outgoing for each month, and save aa percentage of your disposable income. I recommend say £50 a month if you can afford it, but even if you put £10 a month away, or are generally sensible with your money, and don't go wild with credit cards etc. you should be fine. I am a student so don't have that luxury at the moment, but I am very sensible with my credit cards so that if I run into an emergency I can use them. I also don't carry my credit cards with me so that all the money is available on my cards for emergencies.

Answer 5

Depends on how much you make. Can you start at $300 then add 10% from there? Isnt it kinda the same as a Savings account? My husband always likes having "emergency credit cards" but I don't see a need for it. Everyone finances nowadays. If you get into an accident they don't make you pay everything before you leave the hospital, I don't get it.

Answer 6

I think 6 month's of covering all your expenses is a good emergency fund. This doesn't necessarily have to be stuck in a savings account, but can be invested in things you can sell within a short period of time, like stocks or mutual funds.

Last year I was laid off. I ended up using about 2 months of my emergency fund. Now I'm building it back up.

Answer 7

Three months income in a liquid form. After that less liquid investments like stock market, mutual funds, real estate, etc.
That is the rule of thumb I have always heard. Don't forget to also save for your retirement (maybe 15% into a 401k or some regular and Roth IRAs).

Answer 8

3 to 6 months of living expenses. Calculate the total amount of money you need to get by in a month and multiply that by 3, then multiply the same number by six, and you should save somewhere between those two numbers based upon your risk tollerance and your ability to save.

Answer 9

$1000

Answer 10

6 times your monthly expenses. This is so wise. If only I could do it. Of course, It's never enough. You understand that when you fall behind a week....It takes a month to get out of the hole. The farther behind you are....The longer it takes.