Financial experts generally recommend having three to six months' worth of expenses in a. That way you have enough money to pay bills if you temporarily lose your job, but you're keeping your opportunity cost in check by not sitting on too much cash.
"Since we've quit our jobs so early in life, we felt like having the extra cash outside of investments was a great way to reduce risk during recessions and other market collapses," Adcock told Business Insider. Adcock has shared several tips for building an emergency fund — whether you're aiming for $10,000 or $100,000 —
"Both my wife and I worked, so we devoted her entire paycheck to the emergency fund," Adcock said. "It was a critical part of our money strategy before quitting our jobs."on Business Insider that they both worked high-paying jobs and managed to save around 70% of their combined income. Because they were so dedicated to saving for financial independence and early retirement, they also cut some discretionary costs, like TV and magazine subscriptions, and rarely went out to eat.
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