What exactly is a buffer and why is it good to have one?
A buffer is the same as money saved for unforeseen expenses. That money should cover expenses that you and your family cannot avoid, such as a car, food and maybe a car.
How big a buffer you should have depends on what kind of life you live and what expenses you have. According to Felicia Schoenprivate economist at Avanza, a standard buffer should cover essential expenses for two to three months.
Here you can read more about how much cash you should have at home
Felicia Schön is a private economist at Avanza. Photo: PrivatHow much should a family with children have in the buffer?
A family with children should take a little extra when it comes to buffer, says Felicia Schön.
– Children tend to cost a lot and you never really know what will happen. It is also not as easy to adapt to situations, which means that you need to save a little extra, she says and continues:
– It is also for the safety of the children.
This is how much money you should have in the savings account if you live in a condominium
Exactly how much should a family with children have in the savings account?
– It depends very much on what one’s life costs, but I would still say that you should double the standard buffer. This applies especially if you live in a house and have tight margins, for example are very sensitive to if interest rates go up, says Felicia Schön and continues:
– Then the buffer is not for paying current expenses, but should it be the case that you are not prepared for sudden interest rate increases or that electricity prices suddenly jump, you can absolutely use the buffer for that until you get back on your feet.
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