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Your Emergency/Comfort Fund

Your Emergency/Comfort Fund

April 24, 2024

I am often asked how much is enough.

The general rule of thumb is to have 3-6 months of your expenses saved.

This amount varies though, as each situation is different.

A few things to consider:

Are you single? Married? Kids? How steady is your job? How soon could you or your spouse find another job?

People sometimes have a $ amount that makes them feel comfortable. Therefore, I ask people if there is a certain $ amount they feel comfortable with knowing they have access to it if needed. Typically, as people get older this amount increases as one would assume because their risk tolerance tends to lower.

This $ amount, above their emergency fund, allows them to put their head on the pillow at night with less worry.

Do you have an emergency fund built up? Many Americans do not and if they need the money, they oftentimes go into credit card debt or have to sell their investments. You don’t want this to be you.

If you have an emergency fund built up for your situation, give yourself a pat on the back. Give it some more thought and there may be a certain $ amount you’d like to have saved that makes you too feel more comfortable.


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