One question that often pops up on The Simple Dollar is the seemingly simple question of how much a person should be saving each month. People often want to hear a specific percentage or a specific dollar amount so that they have a benchmark or recipe to follow.
The easy answer to this question is as much as possible. The more you save for the future, the easier whatever it is that the future holds for you will be.
Tying that down to specific numbers is hard, but let’s give it a shot, shall we?
An Emergency Fund
The number one most essential thing I would encourage most people to do in terms of saving for the future is to have an emergency fund. An emergency fund is simply a wad of cash sitting in a savings account (which is about the most secure place for it, plus it earns a little bit of interest) that you can draw upon in case of personal emergency. If your car…