How much savings should I have so that I have a good enough safety net.

2 Answers

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   Tim on Mar 05, 2011 Reply

   I would recommend saving 6-12 months worth of living expenses in an emergency fund. This should provide you with a small cushion in case you suddenly lose your job or receive an unexpected financial shock.

   Your monthly living expense is simply how much money you spend in an average month.

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   Erin Nedukonta on Dec 14, 2011 Reply

   Also, you should build an emergency fund to handle most unexpected expenses and this will enable you to become your own lending agency instead of using your credit card.