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How much do you think is good for emergency savings?


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    What do you think is a good amount to have in savings for emergencies? Talking car repairs, home repairs, medical expenses, pet vet visits, etc? Just anything that comes up unexpectedly throughout the year that you know could happen whenever, and usually at the worst time.

    Was thinking to get it to $1000 and replenish it back to that amount every time I need to use it. But I guess it could change if you are single vs if you have a big family. No kids yet myself, but curious what it should be ideally for single folks and those with let's say 2-3 kids. Thoughts?

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    Milton Wrote:

    What do you think is a good amount to have in savings for emergencies? Talking car repairs, home repairs, medical expenses, pet vet visits, etc? Just anything that comes up unexpectedly throughout the year that you know could happen whenever, and usually at the worst time.

    Was thinking to get it to $1000 and replenish it back to that amount every time I need to use it. But I guess it could change if you are single vs if you have a big family. No kids yet myself, but curious what it should be ideally for single folks and those with let's say 2-3 kids. Thoughts?

    I've seen it said many times that a good amount to have for an emergency fund is atleast 3 months rent/mortgage. Obviously that fluctuates a good amount from person to person, but just roughly speaking. I say it seems right. That's a good number to get someone through living expenses and whatnot for 90 days. Should also take care of anything that may come up like car issues, home issues, etc.

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    Honestly, I think it depends on a number of factors. Do you rent or own your house? Do you own your car outright or still paying it off? Is your health insurance deductible high or low? Do you have children? Just to name a few...

    My wife and I don't have children (other than our fur baby), are paying down a mortgage, and own our car. We have a rainy day fund that consists of cash we keep in our safe and a dedicated bank account that we only tap into when we have to. We're on the conservative side when it comes to finances and tend to invest our discretionary income by sending 90% of it to our portfolio and 10% to an account we can access immediately if we need to.

    I understand many people aren't able to do that, so my advice would be to just set aside as much as you realistically can each paycheck. Your car may be working just fine now, but tires inevitably need to be replaced and accidents that require medical attention can happen when you least expect it.

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    Old Sport Wrote:

    I understand many people aren't able to do that, so my advice would be to just set aside as much as you realistically can each paycheck. Your car may be working just fine now, but tires inevitably need to be replaced and accidents that require medical attention can happen when you least expect it.

    Agreed. Tires aren't cheap either. A rainy day fund is definitely a good life line to have. Or one must consider credit cards and loans while in a pinch, and that isn't a very ideal thing in an emergency sort of situation.

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    $5000.00