Financial experts recommend setting aside at least $1,000 for emergencies and adding to it until you’ve saved three to six months’ worth of your living expenses.
Save for Your Situation
The $1,000 guidance is a general rule of thumb. Although everyone’s financial situation is different, having at least $1,000 in reserve equips you to cover many small financial emergencies without scrambling. The end goal should be to build up three to six months’ worth of fixed expenses so you can weather a job loss or a more significant financial setback.