Does saving 20% include the emergency fund too?
Date: Mon, 01/18/2021 - 21:42
I have read that one needs to save about 20% income every month. But, does it include the emergency fund too? Or, do I have to save for the rainy days separately? I am a little confused. Any suggestions please.
You need to save 20% of your
You need to save 20% of your income every month for your emergency fund only. You do not need to save for the rainy days separately. If you can save 20% of your monthly income, then I think it's enough.
Hi Dittron! I would suggest
Hi Dittron! I would suggest you consult a Certified Financial Planner. He or she will suggest you how much you should save every month. Based on that, they will help you in chalking out a realistic budget too.