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Whoever says have a 3 months reserve is grossly underestimating reality for most. Plan on having a 9-12 month cushion. Seriously.
I knew ageism was a real concern coming into this industry so I’ve been fiscally conservative from day 1. I have at least a 2 year cushion, thankfully. Was laid off last year and it’s looking like I’ll need it.
I approached it differently. When I was making less and have less net worth I had around 4-6 months of saving in my bank account. Once my net worth passed 500k mark I started invest everything. The way I see it is that those 6 months of fund will be wasting away in my bank account by not putting them to work. If I need money when I’m laid off I will sell some stocks.
25 years
I have roughly 6 months in cash. If needed, I could liquidate stocks. Trying to build up the cash reserves now, but it’s hard. I agree with Critical, 3 months is nowhere near enough. I think everyone should have a year’s worth.
For the past several years I've had about 6 months worth of critical expenses in my HYSA. Now I'm working towards 18 months and beyond. I have a family and it would help if I slept well at night knowing that I can take care of them for a full year with zero problems.
Big fat zero. Salaries have to keep up with cost of living in order to make any progress in savings
A year of emergency fund is a lot of cash laying around… I have maybe 4 months currently working towards 6