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re: What is the standard method for figuring out how much to keep in savings?
Posted on 5/10/13 at 9:26 am to WG_Dawg
Posted on 5/10/13 at 9:26 am to WG_Dawg
I maintain an emergency fund in my savings account that is enough to last me 1 year. I am working to shave that down though. I have a big purchase coming up in 3 months that I am stashing all of my money in savings for, so I don't spend it idiotically, nor lose it to the markets. Really, I treat savings as a place to hold money for an emergency, and a purchase that will occur within a year or so.
I have not made a science out of how much to keep in savings. Although I have over thought this on many occasions, accurately illustrated by Vols' image that he posted:
I have not made a science out of how much to keep in savings. Although I have over thought this on many occasions, accurately illustrated by Vols' image that he posted:
quote:
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