Recession 2024: How Much Cash Should You Save?

After the crash in 2008, many were left without jobs or money.<br><br>Now with the threat of recession looming in 2024, it's crucial to be prepared.<br><br>**How Much Cash Should You Save?**<br><br>Experts suggest saving at least 3-6 months' worth of living expenses in an easily accessible savings account.<br><br>**Why Liquid Cash is a Must-Have**<br><br>Having liquid cash allows you to:<br><br>* Cover essential expenses in case of job loss<br>* Take advantage of low prices on investments<br>* Make smart financial decisions<br><br>**The Outdated 50/30/20 Rule**<br><br>The 50/30/20 rule doesn't work in today's economic reality:<br><br>* 50% of your income goes to necessities (increased due to inflation)<br>* 30% to discretionary spending (decreased due to rising costs)<br>* 20% to savings and debt repayment (may not be enough)<br><br>**The Importance of Emergency Savings**<br><br>Don't rely on credit cards for emergency funds:<br><br>* High-interest rates can lead to debt<br>* Credit scores may not always be favorable<br><br>**How Much to Save Monthly**<br><br>Allocate a set amount each month for emergency savings.<br><br>Aim to save 10%-20% of your net income.<br><br>**Key Takeaways**<br><br>* Liquid cash is a must-have, especially in a recession.<br>* Emergency savings can help you stay financially afloat.<br>* Save 10%-20% of your net income each month.<br><br>By being financially prepared, you can protect yourself and your loved ones from the potential consequences of a recession.<br><br>[EDIT] I'm not a financial advisor and this post is not investment advice.