Ideal Savings Amount of Savings

You should always have enough money saved up to cover all of your necessary living expenses for at least 6 months. Think it as insurance for yourself. You never know when an emergency situation may arise. You could be suddenly laid off, become injured and not able to work, etc.. You may even want to keep these funds in a separate bank account, to make sure you don't spend it.

To figure out how much money you should have saved up (or Ideal Savings Amount), you would add up your yearly expenses and divide it by 12. Then multiply that figure by 6. You can figure out your Ideal Savings Amount automatically by creating a budget using our website.