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How much money should I set aside for short-term savings?

Curious during short-term savings

How much money should I set aside for short-term savings?

The amount of money you should set aside for shortterm savings depends on your individual financial situation and goals. As a general rule of thumb, it is recommended to have at least 36 months' worth of living expenses saved in an emergency fund. This can help provide a financial cushion in case of unexpected expenses or job loss.

Beyond your emergency fund, you may want to consider setting aside additional money for specific shortterm goals, such as a vacation or down payment on a car. The amount you should save for these goals will depend on the cost of the goal and the timeline for when you want to achieve it.

It is important to find a balance between saving for your shortterm goals and your longterm financial goals, such as retirement savings. Work with a financial advisor or use online financial planning tools to help determine how much you should be saving in each category based on your income, expenses, and goals.

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