How much should I have in savings?

The COVID-19 pandemic taught us the importance of building your savings. According to the Federal Reserve Bank of St. Louis, the total value of personal savings in the U.S. reached over $2.3 trillion last year. 

When you think of savings, you might think of saving for retirement or college, but there are many other reasons to save.

Emergency Savings

An emergency savings is a financial cushion you can use to pay for rent, bills, groceries, and other necessities in the event you become unemployed or get sick or injured. The amount suggested by experts ranges widely, but most recommend having at least three to six months’ worth of expenses in savings. You can also keep your savings in a high yield savings account to accrue more interest on your money.

Personal Savings

While it’s important to save for the big things, you should also save for the small things. Do you want to go on vacation, buy a new computer, or get a new car? This is where personal savings comes in. While you should never pull money from your retirement or emergency savings unless absolutely necessary, personal savings is there to spend. Have a timeline in mind for your next big purchase? You can use the our Savings Calculator to determine how much you need to put into your personal savings each month to reach your goal. 

Save for Irregular Expenses

Expect the unexpected and save for it. Setting aside money for irregular expenses will be helpful when you need to repair a cracked windshield or chip in on a wedding gift.

How much you need in savings depends on what you’re saving for, but you should always use your budgeting skills to plan for the unexpected.

Contact our team to open a savings account today or open online.