What proportion of your income should be in savings?
A)2-3 months of income
B)6-9 months of income
C)12 months of income
D)10%

Question

Quizplus · Accepted Answer

Financial experts recommend having an emergency savings fund that covers 6-9 months of your expenses. This ensures that you have a safety net in case of unexpected job loss, health emergencies, or other financial emergencies. While having 2-3 months of income in savings is a good start, it may not be enough to cover all expenses during an extended emergency. Saving 12 months of income may be excessive and not feasible for many people, while the proportion of 10% of income in savings is not specific enough and may not be enough for a sufficient emergency fund.

What Proportion of Your Income Should Be in Savings