How much money should someone have in their savings?
Question:
Answer:
You should have at least six months' worth of living expenses saved in an accessible savings account (not in a CD or stocks). This is your emergency fund, and it needs to be available if you need it.
For retirement, I found a chart in an ING Newsletter (a link follows; the chart is on page 2). You should have saved for retirement a multiple of your income that is dependent on your age. For example, at 45, you should have 4.1 times your income saved for retirement; so if you make $50,000 per year, you should have $205,000 saved. By the time you're 65, you should have 15 times your income saved.
I always thought it was 3 months of your salary. This way you can survive for three months if you lose your job.
A common recommendation from a financial specialist recommend x3 monthly earnings, then again the same for considered an emergency fund.
Six months living expenses not salary is the rule of thumb but it depends on your individual situation. Money market funds have been good to me lately. You can earn a decent return and still stay liquid.
your supposed to have twice your age in your savings account at all times and eventually it will increase monthly and as rapidly as you age. oh ya.. you got it..:)
~Michael A. Beltran
ReCycle A ThoughT
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