‘They continue to climb.’ You can now earn upwards of 4% on a savings account.
How much do you need in savings? There’s no exact number, but pros recommend keeping anywhere from 3-12 months of essential income in an emergency fund and factors like your age, marital status and career all play a part in exactly how much emergency savings you need. “Married couples still in their careers want between 3 and 6 months of savings, but likely closer to 6 if the income is lopsided,” says certified financial planner Curtis Crossland of Suttle Crossland Wealth Advisors. Though some may consider it excessive, some experts advise having 12 months of emergency savings. “It may only be appropriate if you’re looking to switch careers and you expect to be unemployed for a few months,” says Alvin Carlos, certified financial planner at District Capital Management. In addition to an emergency fund, you may also want to have additional accounts where you save for short-term goals, like buying a home in the next 6 months, or taking a vacation in the near future. Wher...