How much cash should we have in savings
Title, is $25K the necessary amount in savings before investing as a first year analyst?
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For me, I was personally comfortable with $10k in savings as an A1. But completely depends on your lifestyle. Do you have a car? High rent? Dependents? Like to live lavishly? Work backwards from those types of questions to find an amount that makes sense for you.
You can prolly do 18-20k as long as your rent is below 2.5 a month. If your rent is 3k a month or more, then yeah 25k is smart. Especially in this economy, feel like having 6 months of rent plus other basic living expenses in a liquid form is crucial. Last thing you want is to be laid off and be in a complete squeeze. Or have to sell good investments just to pay bills.
I think a good rule of thumb is to budget 7 ~ 12 months worth of rent before investing.
That way if you lose your job, you have a safety net and don’t have to liquidate.
$10k is enough. Just plow rest into retirement and brokerage
6 months of living expenses - calculate what you would still need to spend each month (food, water, shelter) if you lost your job today and multiply it by 6. So you would have 6 months to find a new job which should be doable enough.
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