Personal Finance

3824 readers

1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago

MODERATORS

WandererLagomorph799@lemmy.ml

nieceandtows@programming.dev

nieceandtows@lemmy.ml

[EU] How many months savings do you consider enough? (lemmy.world)

submitted 1 year ago* (last edited 1 year ago) by what_is_a_name@lemmy.world to c/personalfinance@lemmy.ml

21 comments fedilink hide all child comments

As the title says I am trying to see where people stand on this. Obviously this is all personal preference. But that is what I am after.

After depleting our savings when buying our apartment 2 years ago, we’re about to cross 6 months liquid savings in just plain old savings account with ability to immediately withdraw money.

(To clarify that is 6 month assuming 0 income, which is very unlikely given the social system of our country - so realistically we have even more in savings.)

As you can imagine, the interest in this account is not great, so I want to set a limit as to when we stop dumping every spare penny into the savings account and begin doing other things (likely try to invest).

you are viewing a single comment's thread
view the rest of the comments

[–] iamdisillusioned@lemmy.world 4 points 1 year ago (1 children)

6 months is the usual rule, but you should assess your likelihood for extended unemployment. Do you live in a states with low unemployment payout? Is your career in a niche industry? Do you live in an area with fewer jobs overall? All those factors would make me consider pushing to a year+ of liquidity.

[–] alex@jlai.lu 1 points 1 year ago

OP specifically asked about EU, where we generally have unemployment benefits and at least a bit of job stability :)