This is how much money you should have saved by now, according to a financial expert
Suze Orman has pushed back against traditional saving advice, saying that keeping three to six months worth of living expenses in the bank is just not enough.
“You should have at least eight months,” financial expert Suze Orman said at the eMERGE conference Monday, CNBC reported. “Not six months, not three months, I’d like to see you have eight months to one year.”
“You need to know that you are going to be secure,” Orman continued.
Other guidelines suggest that, depending on one’s financial situation, there may not be one set number of months someone should save for. As Money previously reported, a tenured college professor may only need to save to three months, while the sole breadwinner of a household whose income can vary might want to save up to nine to 12 months worth of expenses.
“They’re idiots,” Orman said of those who suggest saving only a few months worth of living expenses, according to CNBC.
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“It’s not just about the economy,” Orman continued. “What if you get sick? What if you’re hit by a car? What if something happens crazy in this world? We live in the craziest world I’ve ever seen in my life right now. And the only way you can take craziness out of that if for you to make yourself secure.”