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Money Q&A: How Much Should Be In An Emergency Savings Account?

Q.

I've heard that you ar esupposed to ideally have around six-plus months of expenditures in an emergency savings account, but right now, we only have about three months' worth. Is that enough?

A.

It sounds like you've got all you bases covered. The most standard recommendation is that you save 3 to 12 months' worth of expenses in an accessible place (though not in the mattress the way your grandma did). Regardless of who's still working, you need to save enough to cover several months of your basic survival expenses (food, rent or mortgage, transportation). So if you bring home on average about $5,000 a month but only spend around $2,000, your savings goal should be $12,000 to cover you for six months-not $30,000 to cover your salaries.

-- The Nest Editors

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