As investors face\u00a0economic uncertainty, financial advisors have guidelines for\u00a0how much cash\u00a0they should have set aside.<\/p>\n
Despite\u00a0second-quarter economic growth, nearly 60% of Americans wrongly think the U.S. is\u00a0currently in a recession, according to a June survey of 2,000 adults from Affirm.<\/p>\n
While\u00a0Goldman Sachs\u00a0and\u00a0JP Morgan\u00a0raised recession forecasts in August, other experts still expect an economic \u201csoft landing,\u201d meaning the Federal Reserve\u2019s policy won\u2019t cause a downturn.<\/p>\n
Meanwhile, inflation\u00a0continues to ease, but a weaker-than-expected\u00a0jobs report for July\u00a0triggered\u00a0stock market volatility\u00a0last week.<\/p>\n
Amid the uncertainty, nearly\u00a060% of Americans\u00a0aren\u2019t comfortable with their level of emergency savings, up from 48% in 2021, according to an annual Bankrate survey that polled more than 1,000 U.S. adults in May.<\/p>\n
As of the polling, some 27% of those surveyed had no emergency savings \u2014 the highest percentage since 2020, Bankrate found.<\/p>\n
Regardless of the economic climate, investors need emergency savings to cover expenses in the event of\u00a0a job loss\u00a0or other unexpected bills. Here\u2019s how much cash to set aside, according to financial advisors.<\/p>\n
Double-income families should aim to save at least three months of living expenses, according to certified financial planner Greg Giardino, vice president of Wealth Enhancement Group in Oakland, New Jersey.\u00a0<\/p>\n
However, you could adjust that guideline \u201cdepending on the reliability of those income sources,\u201d he said. For example, commissioned workers with unpredictable cash flow\u00a0<\/strong>may need more than tenured professors.<\/p>\n Building that level of cash reserves isn\u2019t easy. Only 44% of Americans have three months of expenses saved for emergencies, according to Bankrate\u2019s survey.<\/p>\n Generally, single individuals or families with a single income should save at least six months of expenses, experts say.<\/p>\n But higher levels of cash reserves could offer more flexibility when faced with a job loss or economic downturn.<\/p>\n Douglas Boneparth, a CFP and president of Bone Fide Wealth in New York, prefers six to nine months of savings for single earners.<\/p>\n \u201cI\u2019ve never come across someone who was upset that they had a little bit more cash than they needed,\u201d said Boneparth, who is also a member of CNBC\u2019s\u00a0Financial Advisor Council.<\/p>\n Boston-based CFP and enrolled agent Catherine Valega, founder of Green Bee Advisory, said she is \u201cmore conservative than most other advisors\u201d and recommends 12 to 18 months of living expenses in \u201csafe, liquid investments\u201d for single earners.<\/p>\n Although the Federal Reserve could\u00a0start cutting interest rates\u00a0in September, investors still have \u201chigh-yield savings opportunities,\u201d she added.<\/p>\n Entrepreneurs: Keep up to one year of expenses<\/p>\n With unsteady income, entrepreneurs or small business owners could also benefit from higher levels of savings \u2014 eight to 12 months of expenses, according to Giardino of Wealth Enhancement Group.<\/p>\n Of course, the exact amount for emergency savings depends on your unique circumstances and your family\u2019s needs.<\/p>\n<\/p>\n As investors face\u00a0economic uncertainty, financial advisors have guidelines for\u00a0how much cash\u00a0they should have set aside. Despite\u00a0second-quarter economic growth, nearly 60% of Americans wrongly think the U.S. is\u00a0currently in a recession, according to a June survey of 2,000 adults from Affirm. While\u00a0Goldman Sachs\u00a0and\u00a0JP Morgan\u00a0raised recession forecasts in August, other experts still expect an economic \u201csoft landing,\u201d […]<\/p>\n","protected":false},"author":0,"featured_media":7919,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=7918"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/7919"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=7918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=7918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=7918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}