Neutral impactEconomy
How much savings is enough for financial security? Experts explain how to calculate the ideal cushion
Mint 44 min ago·8 Sept 2026, 9:02 am
Financial security is a top priority for investors, but determining the right savings target can be confusing. Experts suggest that the ideal amount of money to keep aside depends on your personal circumstances rather than a fixed rule. Key factors include your monthly expenses, the number of dependants you support, and the stability of your income source. A stable job with few liabilities might require a smaller emergency fund compared to a freelancer with a large family to support.
This cushion acts as a vital safety net, protecting you from unexpected events like job loss or medical emergencies. By calculating your needs based on these factors, you can build a reserve that provides genuine peace of mind. Investors should regularly review this amount as their life circumstances change to ensure they remain adequately prepared for the future.
Excerpt from Mint
Your ideal financial cushion depends on monthly expenses, liabilities, dependants and income stability, not just your salary or savings. Here’s how many months of expenses you should keep aside based on your age, job and financial responsibilities. Having a large amount of money in the bank does not necessarily mean…Read the original at Mint
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