How Much Money Should I Have in Savings?

There’s no perfect number for everyone, but a common rule of thumb is to aim for 3–6 months of essential expenses in savings over time.

If that feels huge right now, start smaller: even $500–$1,000 as a starter emergency fund can make a big difference.

KOHO Essential to Build Your Savings

If you’re trying to grow savings without juggling multiple accounts, with KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Simple Savings Benchmarks

Here’s a straightforward way to think about it:

• Starter goal:
  Aim for $500–$1,000 as a basic emergency buffer for small surprises (like car repairs or a surprise bill).

• Next step: 1 month of expenses
  Save enough to cover rent, groceries, bills, and transportation for one month.

• Long-term target: 3–6 months of expenses
  Once you hit one month, slowly build toward 3–6 months of essential costs.

  • If your job or income is unstable → lean closer to 6 months.

  • If your income is stable and you have strong support → 3 months may be enough.

How to Figure Out Your Number

1. Add up your monthly essentials:

   • Rent/mortgage

   • Utilities and phone

   • Groceries

   • Transportation

   • Minimum debt payments

2. Multiply that by 3–6 to get your rough goal.

3. Break it into smaller milestones so it feels doable (for example, “first $1,000,” then “first one month,” and so on).

You don’t have to get there all at once.

It’s about steady progress, not perfection.