How much emergency savings should you have?
How do you know whether to lean more towards the lower side (3 months savings) versus the higher side (6 months savings) of the emergency savings fund?
Dave Ramsey says this is a negotiation between husband and spouse. One person is typically the spender and one person is the saver. The person who is more conservative with money will generally feel more comfortable with having a larger savings account.
Aside from the emotional aspect of the decision, Dave provides some practical advice. Consider the job situation for your family. What’s the stability of the industry in which you’re working? If you have a stable public sector job, you may feel more comfortable with a smaller savings. However, if one spouse is employed in a more volatile industry, the fund may need to be more.
Husband and wife should discuss the amount they both can feel comfortable with when they go to sleep at night. Dave stated he saves more (not because it’s in his nature), but for the comfort or blessing it provides to his wife who is more risk adverse.
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