The important thing is to plan for what you might need according to your circumstances and keep those savings in an account you can access easily-preferably one that isnвЂ™t subject to the ups and downs of the stock market. On the other hand, a couple in their prime earning years with 2 kids and a mortgage will need a larger financial buffer in case of emergencies. Young people, for example, wonвЂ™t usually have enough saved up to cover their expenses for very long, but they might also have an easy way to move in with family or friends if they need to. The amount you need in your emergency fund also tends to change over time. Just make sure you rebuild your savings afterward. You can also use an emergency fund to pay for unexpected expenses like needing a new roof or having to move, dipping into these savings so you donвЂ™t rack up credit card debt. Why so much? To protect you against the possibility of losing your job, needing time to recover from an accident, or any other major life emergency. An emergency fund to weather lifeвЂ™s ups and downsД®xperts recommend saving up enough in an emergency fund to pay for at least 3вЂ“6 months of living expenses: your rent or mortgage, utility bills, gas for your car, and so on. Retirement savings: to live on once you stop working for your incomeД®ach of these savings вЂњbucketsвЂќ will look very different at different times in your life.Planned savings for specific events: to pay for things like a vacation, a downpayment on a house, a wedding, college tuition, or anything else you know is coming.Emergency savings: to take care of unexpected surprises, from a new transmission for your car to a job transition that might last a few months.The 3 types of savings youвЂ™ll want to think about

This guide starts with a brief introduction to the 3 kinds of savings youвЂ™ll want to think about and then lays out solid financial benchmarks for your savings and net worth across every decade. Still, there are guidelines that can help you plan ahead for a secure financial future. The answers to these questions are unique for everyone, based on factors such as how you want to live, whatвЂ™s important to you, and how close you are to retirement. If you want to know how much you should have saved at this point in your life, or what your next savings goal should be, youвЂ™re asking some of the most important questions there are when it comes to your personal finances.

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