Is it realistic to have a 6 months emergency fund?

[International Playa]

In an ideal world, you would have 6 months worth of emergency fund to cover your monthly expenses.

Is it realistic for the average person?

 

[jdubnyce]

In an ideal world, you would have 6 months worth of emergency fund to cover your monthly expenses.

Is it realistic for the average person?

Average person cannot afford to have 6 months of expenses sitting in a non registered account untouched

 

[dora_da_destroyer]

In an ideal world, you would have 6 months worth of emergency fund to cover your monthly expenses.

Is it realistic for the average person?

given the average person lives paycheck to paycheck, no. that said, there are a lot more people who could have 6 months of savings by simply being disciplined and making a few sacrifices. not everyone who has no savings doesn't have it due to stretched finances/being underpaid, a whole bunch of people spend too much and keep themselves broke

 

[Ezekiel 25:17]

Why wouldn't it be realistic? As long as you don't live above your means, then you good. I feel like if I can't save a minimum of $1000/month after bills + 401k/Roth Ira I need to cut some fat or make a bit more.

But yeah you should have about $15k minimum for an emergency fund imo

 

[mamba]

I do. I never even look at the account. It's good to know the money is there if I ever need it.

 

[acri1]

Like with anything else, it depends on their income and expenses

If you're living paycheck-to-paycheck probably not. If you keep your costs of living down and make decent money it's doable. A big problem is that most people can't afford their rent/mortgage. You shouldn't spend more than 30% of your income on housing (IMO <25%) but most people spend like half. Obviously it's hard to save in that situation.


Basically a huge portion of people live above their means and have rent/car notes/etc they can't afford.

 

[Vandelay]

When you're in you early-mid 20s nah. But by 30, you should. Unless you touching poverty, if you save 5% of your paycheck you should be able to have this in a few years.

That being, I'm paycheck to paycheck like a mug...that lifestyle creep, some dumb investments, and supporting some family I should've been cut off will fukk your money up real quick.

 

[Orange cream shake]

In an ideal world, you would have 6 months worth of emergency fund to cover your monthly expenses.

Is it realistic for the average person?

Yes it is especially after the government been throwing money at us for the last year.

 

[Mirin4rmfar]

For six certs, six figure people, yes for the average person..no!!

 

[Originalman]

Not realistic for everyone. But you should if you can.

I would actually advise 12 months. Cause realistically in a market downturn there is no guarantee you will find employment in 6 months if laid off.

 

[Motife43]

Definitely realistic, but it's difficult. Money management and budgeting are always emphasized but the main barrier to an emergency fund is income and having to live check to check.

 

[Wildhundreds]

Average person cannot afford to have 6 months of expenses sitting in a non registered account untouched

Minimize your expenses and its easy..

 

[Shadow King]

For most people, no it is not.

 

[Scustin Bieburr]

Most people don't have half a year in salary saved up. If youre making 40k a year and living off that, basically you would need to have 20k in the bank for emergencies.

Forget anyone making 40k, is there anyone yall know who is making even 80k a year who has 20k in savings

 

[Turbulent]

It's realistic if you are debt free.