What is a good amount to save every month for emergency money?
Hi - You will want to have at least 3 months expenses saved up, but 6 months is better. For example, if it costs $2,000 to run your household every month, than you will want to have at least $6,000 in the bank ($12,000 for 6 months). From there it is a question of how soon do you want the total in your bank? If you want to do it in one year, divide by 12 for a monthly savings amount or by payday if you want to do it per payday: there are 24 paydays in a year if you are paid twice per month (26 if you are paid every two weeks)., So if you need $2,000 for every month and you want to have 6 months' in the bank ($12,000) and do it in one year, then your monthly savings amount will be $1,000 ($500 per payday if paid twice per month) You will earn a little interest along the way but not enough that you can hope to make up for a smaller deposit.. Good luck! | 08.14.15 @ 21:29
Many people will tell you, 3-6months. But lately I can across individual that can find jobs or any source of income almost in 1 year. So in my humble opinion, I want to advise people if they can do it year! Do it!
Especially, if your the bread winner in the family. | 11.25.15 @ 07:57