How much of a savings is good to have??

Question

as an emergency fund?

Answer 1

I've been told that its good to have 3 months living expenses saved in case of emergency... but I've always found it hard to save that much without spending it.
Best thing to do is take 10% off the top of everything you make. Even if you only make $100 a week, put $10 into a saving account. You'll get used to using 90% of your income, and you'll be amazed how quickly your savings will build up.

Answer 2

I think that it's a good idea to have at least two months of salary in your savings account for easy access in case of emergencies. That way, if you lose your job, you'll be able to spend time finding a new job that you like instead of something just to keep from losing your home, car, etc. And, if you have a big expense (car repair, appliance replacement, etc.), you won't have to charge the costs and pay 25% interest or more.

If you can afford three months of salary, even better. After that, it's probably a good idea to invest the savings in a short-term CD. The interest will be higher, and you'll still have access to your money in a few months.

Answer 3

It depends on the purpose of your saving. I would recommend that you get an emergency fund of 3-6 months living expenses. This will be your safety net when things go wrong (car breaks down, trip to the hospital, etc.).

Ideally, you'll want to put this money in a money market account. A money market account earns 5% interest vs. a traditional saving of something like .05%.

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Answer 4

6 months of income in an emergency fund.

Answer 5

Experts recommend a minimum of 3 and preferrably 6 months' worth of expenses in your emergency fund. This should be one of your top financial priorities.

Answer 6

Dont worry about other answers that seem to general or broad. Any financial expert, mortgager or even bank will tell you that the approx. amount of money to have in an "emergency" account is $1,000. I know it sounds like a lot at once, but do like I did and just open the savings acct. w/the min. balance and then have a sm. amount of money automatically transfered ea. payday. That way you won't miss the money and you'll come up w/$1,000 in no time. Thanks!

Answer 7

3 months salary, but you can never have enough. Keep saving do with out eating out all the time, that new shirt every week etc. Find something you can give up, and save. I am 33 and wish I had started earlier.

Answer 8

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RE How much of a savings is good to have??

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Answer 9

That depends on what you're saving for - retirement, college, emergency, vacation?

Answer 10

They say 3 months bills in savings if good.