How Much Money Should I Keep in Savings Video
How Much Money Should I Keep in Savings?
Step 1: Start an Emergency Fund
What It Is: A separate savings account that's dedicated to emergencies only
Why You Need It: 1. Peace of mind; 2. To prevent poor financial decisions (like credit card debt)
How Much To Save: 3-6 Months Worth of Expenses (Freelancers: Save 2x this amount)
Step 2: Start a "Dry Powder" Fund
What It Is: A separate savings account that's dedicated for new opportunities
Why You Need It: Be prepared for rare opportunities like: Business ventures, Value Stocks, or Investment properties
How Much To Save: Between 3% - 30% of your income (depending on your goals)
Happy Savings!