Full Time.com article: https://time.com/nextadvisor/banking/savings/how-much-should-you-have-in-emergency-savings/

Six to 12 months of expenses

Eric Maldonado, CFP, a financial advisor at Aquila Wealth Advisors in San Luis Obispo, California, also recommends an emergency fund buffer of six to 12 month of expenses.

“This becomes your stress valve,” he says. “You want to be able to make big life decisions based on what you value most. If you don’t have enough cash on hand, you end up having to make hasty decisions due to time constraints.”

And ultimately, that’s what your emergency is built for: peace of mind.

No matter what hardships or opportunities come your way, “You won’t have to make concessions on your priorities when you have time to think, seek advice, and see how it all plays out,” Maldonado says. “It’s harder to make big decisions while experiencing stress or anxiety. Having six to 12 months of cash reserves allows you to remove some of that stress and anxiety. It gives you time and options.”

Eric Maldonado, CFP®, MBA

(805)250-4552

eric@aquilawealth.com

872 Higuera St., San Luis Obispo, CA 93401

www.aquilawealth.com