Put 3-6 Months of Expenses In Savings

To keep your financial house strong and solvent, you need to have savings, in a liquid format, to cover three to six months of expenses. Not three to six months of income, but expenses. Look at what you actually spend on the necessities of life: rent or house payment, groceries, utilities, car payments, internet, and phone. If something unforeseen happens, you don’t want to have to diminish your assets or take on additional liabilities to survive. An account with three to six months’ worth of expenses should help you cover the short term and keep you afloat.