Jim over at bargaineering shares some good thoughts on how much money to save. He suggests:
“I think there exists a bare minimum of what you should be saving from month to month and it should be a standard for everyone who has gainful employment. The absolute bare minimum consists of two things: 401(k), if your employer offers a match, and an emergency fund of at least three months of your expenses.”
For most of you just getting started, 3 months may seem like a lot to have in savings. Don’t get discouraged. Even $1,000 or $2,000 will insulate you from the financial potholes of life as we discussed in my article about Money in the Bank.
Three months will cover most people switching between jobs or some serious setbacks. It’s a good goal to strive for. But as Jim says, it really depends on your own personal situation.
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