Most families experience high income volatility month-to-month and year-to-year. On average, families see large income swings—deviations of over 25 percent from their median monthly income—in five months of the year. To weather the adverse event of both an income dip and spending spike in the same month, an event that happens roughly every five years, how much of a cash buffer does a person with your income and age need?
Read the full report here: Weathering Volatility 2.0: A Monthly Stress Test to Guide Savings
Families with incomes between $XXXX and $XXXX a primary account holder aged XXX to XXX, should have a minimum liquid cash buffer of XXX weeks to weather a simultaneous income dip and spending spike, which equates to $XXX.
Numbers may not sum due to rounding.