Ask HN: How much to put into a personal emergency savings fund?
People say 6-12 months. I believe it varies by risk profile and career standing.
Did someone just pick a number? What is the math involved? And does anyone have a first hand experience in having to live without any income for 6-12 months / essentially tapping in money from the emergency savings?
P.S. - I am a programmer, in my mid 20's. I can't fathom the fact that I need 6-12 months of savings sitting in a money market fund, that earns a few pennies in interest every month. Rather, I would save 3 months of cash. And put the rest in mutual funds (Vanguard low-cost ETFs).
P.S. 2 - No car payments, no student loans, no mortgage.
Did someone just pick a number? What is the math involved? And does anyone have a first hand experience in having to live without any income for 6-12 months / essentially tapping in money from the emergency savings?
P.S. - I am a programmer, in my mid 20's. I can't fathom the fact that I need 6-12 months of savings sitting in a money market fund, that earns a few pennies in interest every month. Rather, I would save 3 months of cash. And put the rest in mutual funds (Vanguard low-cost ETFs).
P.S. 2 - No car payments, no student loans, no mortgage.