Have Six Months Of Savings Put Back In Case You Are Ever Unemployed

You should have six months of savings put back for emergencies.  Yes, we know it is always good to have savings put back in case you need the money for car repairs or any number of reasons that you need extra money.

But what do I mean when I say you need to have six months of savings put back?  I mean that you need to bank the amount of money that you make in 6 months and put it in a special account in case you are ever unemployed.  When you are unemployed, the amount of money you bring home changes but your bills do not.

No one ever plans to lose their job or be laid off.  Our economy is shaky these days and that is news to no one.  It is only wise to have six months of savings set aside in case the worst case scenario with your job happens to you.

It takes time to find a new job.  The amount of time varies but six months is a good benchmark to be prepared for.  You may not need near that amount but it is better to have too much put back than too little.

Six months of savings sounds overwhelming, so don’t think about it that way.  First make it your goal to save a smaller amount of your pay, like 1 month’s salary.  When you have that you can increase your goal.

Try to set a special account up just for this that is separate from your other savings account.  If you don’t set a separate account up it is too easy for money to get mixed up and the other to get pulled from.

Having six months of savings put back will give you peace of mind in case you ever do need it.


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