What should be the minimum balance for an emergency funds account?

[Iboro]

This is a topic that has been widely debated among financial experts and regular people alike. While some suggest having a minimum of three to six months of living expenses saved, others believe that a larger amount is necessary for added security.

What factors should be considered when determining the base balance? How much do you currently have in your emergency fund and why did you choose that amount?

 

[Salt]

An emergency fund is for us and therefore there is no such minimum or maximum for it but we need to plan it in order to stay safe, many say it should be equal to our 12 months salary

 

[Niyi]

An emergency fund is for us and therefore there is no such minimum or maximum for it but we need to plan it in order to stay safe, many say it should be equal to our 12 months salary

I understand that there is no compulsion on minimum and maximum amount for an emergency fund. But what is the use of an emergency fund when if something happens and you need to draw from it, it can't even help you start with solving the need

 

[Salt]

I don't have any emergency balance but I have read views of many and as per them we need to add at least our 12 month salary in an emergency fund

 

[Good-Person]

An emergency fund is for us and therefore there is no such minimum or maximum for it but we need to plan it in order to stay safe, many say it should be equal to our 12 months salary

I think that all people should have some money in their account in order to deal with emergency situation in order to avoid taking loans from people.

 

[Salt]

We need to have at least 12 months of our salary in that account if we seriously like to have that fund

 

[Riberet19]

Saving is very important if a person wants to keep their finances healthy, I think an emergency fund depends a lot on their needs and the area where they live etc, in my case I think a good emergency fund should start with $ 1000

 

[Salt]

That's why I feel if we can keep at least 12 months of our salary in our emergency account then it will be useful for us at time of any emergency.

 

[Riberet19]

That's why I feel if we can keep at least 12 months of our salary in our emergency account then it will be useful for us at time of any emergency.

Yes, that really would be a fairly large emergency fund, it is well thought out to tell the truth, It will allow you to cope with the accounts for many months

 

[Nsikan]

If you use $1000 to survive every month, you should keep $6000. That would mean you can comfortably survive for 6 months in case of an emergency.

 

[Bisolami]

An emergency fund is for us and therefore there is no such minimum or maximum for it but we need to plan it in order to stay safe, many say it should be equal to our 12 months salary

I think it depends on how much money the person was able to save and how much money he receives.

 

[Salt]

I have read somewhere that it should at least be equal to our 12 months' salary and I also feel that its a correct amount for emergencies

 

[Nsikan]

I have read somewhere that it should at least be equal to our 12 months' salary and I also feel that its a correct amount for emergencies

Ideally, it should be 12 months living expenses. It is not salary but expenses. Your expenses may be higher or lower than your salaries.

 

[Good-Person]

Saving is very important if a person wants to keep their finances healthy, I think an emergency fund depends a lot on their needs and the area where they live etc, in my case I think a good emergency fund should start with $ 1000

I really do not know how much I shall save. However, the fact of the matter is that I am saving as much as I can. i no longer consume a lot of fuel.

 

[Riberet19]

I really do not know how much I shall save. However, the fact of the matter is that I am saving as much as I can. i no longer consume a lot of fuel.

It all depends as I said on your needs, how much you spend per month, the country where you live, not all of us need the same, maybe I live in Spain need a somewhat larger o lower fund, but for example maybe a person who lives in a country with different conditions needs more or less, everything depends.

 

[Salt]

Ideally, it should be 12 months living expenses. It is not salary but expenses. Your expenses may be higher or lower than your salaries.

If our expenses are more than our salary then we need to do something about it first as the emergency fund can wait

 

[Kane]

I think you need at least 4 months of expenses on your emergency funds. If you encounter any emergency, for instance a loss of job, 4 months will be enough for you to fina new job. Some people suggest you to have at least 12 months expenses on your emergency funds in case you encounter medical emergencies such as had to go through a survery.