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Anonymous

14 Nov 2023

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2) What is the rough percentage of my monthly salary should I set aside so as to save up for my own emergency funds? (Eg. 5% ~ 10%). Maybe can also state the reason behind why that rough percentage?

Usually for the right amount of emergency funds, it is supposed to be about 6 to 12 months worth of our monthly salary added up together.

I mean I would definitely still have to factor in my other neccesities of life, such as my food, transport, lodging, monthly bills, leisure and entertainment etc, so it will be completely illogical if I were to say that I am not going to spend a single cent of my salary just to be able to use it entirely to quickly save up to the amount that I have intended for emergency funds. In this case, what should then be the reccomended/advisable range of percentage of my monthly salary that I ought to set aside to achieve my goal?

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Calvin

19 Nov 2023

Again, no rough percentage. Depends on your monthly expenses. the purpose is to secure 6 months to 1 year expenses if you suddenly not bringing in income for whatever reason (further studies, taking a break, crisis in family etc)

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Justin

14 Nov 2023

Content Strategist at Seedly

In general, the 50-30-20 rule works great. But if you want to be extra safe, you can increase your emergency savings percentage to 30% or even 40%.

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tinycents

14 Nov 2023

Savings can be 20 to 30% of income....

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