How much savings should I try to keep in my account?

I’ve been wondering how much I should keep in my savings account. Since I don’t have a financial advisor or anything, I try to figure this kind of thing out on my own, but since this is an advice site, I thought I’d give it a shot.

I make decent money, and I do save some, but I’m wondering because I always find myself short of cash, should I not save as much? What’s the smallest amount I should save, you think?

Answer #1

Most financial advisors will tell you to save until you have at least six months of liquidity in your account. For most people (myself included) that’s way more than they can manage, so if you have at least 2-4 weeks of savings that should give you enough cushion if something extraordinary happens. Given life’s uncertainties though, it’s always a good idea to try to save more.

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