I’m a Financial Planner: How Much You Should Have in Savings vs. Investing

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Here well explore how much money you should have in savingscompared to how much you should be investing.

Before looking into your savings, lets address your checking account.

This way, youre covered for daily expenses and any surprises that might pop up.

This is your safety net for unexpected expenses or emergencies.

Thats enough liquid money to cover the average Americansimmediate emergency or vacation.

This ensures the money is accessible and isnt subject to market volatility.

After youve sorted your checking and savings, I recommend automatically investing any extra funds in the stock market.

This approach helps you build your wealth while still keeping enough cash available for those unexpected moments.

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Kovar stated that funds outside your checking account and emergency savings should be invested.

to long-term investment accounts (retirement, buying a business, etc.

), Kovar said.