How much emergency money specifically do u need for life time?

Question

i mean how much money would u like to have throughout your life just to cover emergeny things like unemployment or illnesses, assuming u earn as much as u spend monthly and this amount of money is just for emergency - how much would it be for you in $ or £ ?

Answer 1

I think a minimum would be a 6 month "cushion" against emergencies - that would be 6 months rent, utilities, other payments (car, health insurance, etc.) but probably a year would be better. Hard to do, however.

Answer 2

First, good for you for thinking ahead. You'll be able to show others model behavior with your money.

For the size of an emergency fund, the popular guideline is 6 months of net income, that is, 6 months of after-tax income, also called take-home pay. It should easily cover 6 months of normal living expenses.

Liz Pulliam Weston has many good articles at:
http://articles.moneycentral.msn.com/Commentary/ByAuthor/LizPulliamWeston.aspx

Things you should also be able to cover:

automobile: new clutch, new transmission, blown head gasket, bad catalytic converter, broken windshield, all insurance deductibles if you're in a chargeable accident. Getting towed for parking illegally or for roadside breakdown.

medical: all health insurance copays if you are admitted for a medical emergency, or day surgery. All prescriptions. Pregnancy.

Home: Plumbing failure, heating failure, homeowner's and flood insurance deductibles. Driveway snow removal. Roof failure from tree damage. Chimney failure. A full tank of heating oil or other fuel. A property tax increase.

Legal: Enough to retain an attorney or an accountant (estate) if you need one.

Enough to pay for a funeral or probate an estate if you are the executor and/or heir.

Answer 3

no less than 6 months of your yearly income is a safe bet

Answer 4

A friend of mine has a nest egg consisting of one year of her salary. If that will help!