Personal Finance

How Much Money Should I Keep in Savings Video

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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!

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