How Much Money Should I Keep in My Savings Account?

Types of Savings Accounts

Saving money is an important habit that provides a safety net for emergencies and helps you to achieve your financial goals. A savings account is a popular choice for stashing away funds, but the question often arises: How much money should you keep in your savings account? In this article, we will explore factors to consider when determining the right amount to keep in your savings account.

  • Emergency Fund

One of the primary reasons to have a savings account is to build an emergency fund. Aim to save enough for three to six months’ worth of monthly expenses including rent or mortgage, utilities, groceries, and other necessities. This safety net can help you cover unexpected expenses such as medical bills, car repairs, or job loss without resorting to high-interest debt.

  • Short-Term Goals

Your savings account can also be used to save for short-term goals, like a vacation or a new car. To determine how much to save, set a specific target amount and a timeline for achieving these goals. Make sure it is feasible and aligns with your other financial priorities.

  • Long-Term Goals

Keeping money in your savings account is also advisable for long-term goals as it can act as a buffer for unexpected expenses or market fluctuations. The amount you allocate to your savings account for these purposes should be based on your overall financial plan and goals.

  • Regularly Review and Adjust

Your financial situation can change over time due to various factors such as income fluctuations, expenses, and financial goals. Therefore, it is essential to regularly review and adjust the amount you keep in your savings account. As your income grows or your expenses decrease, consider increasing the amount you allocate into your savings account. 



Determining how much money to keep in your savings account depends on your individual financial goals and needs. It is important to find a balance between having enough to cover for emergencies and short-term goals, while also considering long-term financial planning. Regularly review and adjust your savings strategy to help ensure financial security and progress toward your financial objectives. By following the tips and suggestions outlined above, you can decide how much money to keep in your savings account. 


Look to California Community Credit Union for all your Savings Account Needs

California Community Credit Union provides extraordinary products and services to fit your financial needs and wants. CACCU offers you a safe way to save and earn competitive dividends with our savings accounts. We invite you to become a valued member today – contact us to get started on your financial journey!

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