💰How much you should keep in savings

Jun 17, 2026

read time 2 minutes

Hi there,

One of the most common questions I get is: "how much should I keep in savings?" The answer is usually simpler than people think.

Your first goal should be building an emergency fund.

Not buying stocks. Not picking crypto. Not chasing the next hot investment.

Just building a solid financial cushion.

I recommend keeping 3-6 months of living expenses in a high-yield savings account (HYSA). Why? Because life happens.

Cars break down. Jobs get lost. Unexpected bills show up.

And when they do, your emergency fund keeps a temporary problem from becoming a financial disaster. That's also why I like keeping emergency savings in a HYSA.

Your money stays safe, easily accessible, and earns interest while it sits there waiting for a rainy day.

But here's where many people get stuck.

They hit their savings goal... and then keep piling more and more money into cash.

At a certain point, your money needs a new job.

Once your emergency fund is fully funded, the next dollars you save should usually start moving toward long-term goals. That could mean:

Investing in index funds
Contributing to a Roth IRA
Investing through a brokerage account
Saving for a home purchase
Building other long-term assets

The mistake I see people make is treating every dollar the same.

Emergency fund money has one purpose: security.

Investment money has another purpose: growth.

You need both.

And one of the easiest ways to build wealth is to automate the process.

Every payday, put a portion into savings until your emergency fund is complete.

Then redirect those contributions toward investing.

Leave some room to enjoy life.

Repeat consistently. That's it.

Wealth building is often less complicated than people make it seem.

Build your safety net. Invest the difference. Stay consistent.

And let time do the heavy lifting.

Using my affiliate link helps support my team and I to create new content for you every week. Thank you!

- Milan and Team

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