What is your emergency fund savings number? How much should you store in your Wealth Security Bucket to *really* be prepared for financial hardship? Rob Rowsell, successful multifamily investor, has the answers. It all comes down to what number you and your family can agree on to fund your lifestyle in the event of a catastrophic emergency, such as job loss, illness, or natural disasters.
Emergency Fund Savings Number – How Much Should I Save?
Hans responded to Rob’s request for questions by asking about the “Security Bucket” concept. What kind of account does Rob recommend, and perhaps more importantly, what is the magic emergency fund savings number?
Rob previously mentioned he has two years of income saved up in his security bucket. What amount do most experts recommend, though? Simply put, Rob says it’s an amount that you and your spouse can agree upon, assuming you are married. Money is a point of contention in most marriages, so you will likely need to compromise. Although he is exaggerating, Rob says three months of income is fine by him, but his wife Claudia wants ten years! Obviously, their two year cushion compromise resulted from some serious haggling.
Many financial advisors recommend saving up six months of income as an emergency fund savings number. Your mileage may vary, depending on your own circumstances and risk factor. For instance, younger investors likely have a lot more runway left in life to take financial risks. Thus, they will have a lot more time to refill their security bucket when disaster strikes. Rob recommends the book “The Psychology of Money” for more in depth reading on saving for potential calamity.
Join Our Multifamily Investing Community Today
Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!
