How much money should I have in my savings to feel more or less secure?

Question

I don't mean interms of 3-6 months worth of expenses, I know that. Even I have this I still do not feel secure enough. Can you come up with the number, I just curious about other people's opinion on this matter...

Answer 1

The 'rule' is that you should have 4-6 months of expenses in there. So that, if you were to lose your job, you have 4-6 months where you could pay expenses AND look for work. It's tough to get that amount, but that's the 'goal'

Answer 2

I know what you mean. I have a little over 30K saved in 5 separate accounts. Half of it is for emergency, the other half is for my future home. I will need 10K more to feel comfortable enough to purchase a home - even when I save that I will still think that is not enough.

It might also be all about "the grass is greener" envy. My friends that earn the same income have more stuff, newer things and drive BMWs. Whenever I see them with all these stuff, I feel like I need to save enough so I can afford the same thing.

Just live below your means, save as much as you can and invest well.

Answer 3

You need 3 to 6 months of savings for emergency funds. That's money to pay for the bills, food, transport and other fixed costs that will still go on even if you don't work. The 3 to 6 months is the dateline by which you have to find work.

Answer 4

3-6 months worth of expenses, usually closer to 3 if you have an entry level job and more as your stature increases.
Put that money in a solid Money Market fund.

Hope that adds a little to the above great answers!

Answer 5

I just want to reinforce the answers above. 4 to 6 months of after tax income is the general rule.

Answer 6

I would feel secure with about $10,000 in savings.