Here’s how much savings you need right now, according to “Shark Tank” star Kevin O’Leary. (Psst: Much less than Suze Orman recommends.)

Suze Orman currently recommends 12 months of expenses (not salaries) as an emergency fund. This is a figure he increased from eight months’ worth of expenses as a result of the pandemic. Dave Ramsey’s guidance is that you should save about six months.

Why does O’Leary not recommend it? He says putting large sums of money in a low-interest savings account is a big mistake. “Currently, bank accounts are almost unobtainable [interest]'” he said in an interview with CNBC.

To be fair, he said this in May, but now savings accounts are making more payments. “Federal Reserve rate hikes have increased interest in saving. You may have to look into money market funds, but you can get 2% to 3% of your cash on hand. does not have FDIC insurance and takes an extra day or two to receive the money compared to a checking or savings account, but depending on how much you put into it, you can get a decent profit from your cash reserves. You can.” Financial planner Spencer Betts.

Experts like Orman and O’Leary don’t quite agree on how much emergency savings you need, so we asked certified financial planners for their thoughts.

“In case you lose your job for a while, or have other unexpected expenses at the same time, pay for your home so you don’t lose it, and prepare yourself for all of these You need to have coverage, says Keith Spencer, Certified Financial Planner at Spencer Financial Planning.

When Spencer talks with clients to determine how much emergency funding they need, the three main things are the client’s income level, type of employment, and mortgage amount. “Your form of employment is important because your chances of losing your job can change more or less. If you’re in a role, it’s wise to have more cash on hand,” says Spencer. This is to avoid default or foreclosure as a result of late payments if they lose their jobs.

See the best savings account rates available right now here.

In fact, many emergency funding issues are life stage and situation specific. “If someone is jumping into entrepreneurship and looking to start a new business, they will need a cash reserve of a year or more. three to six months is probably enough,” said Eric Maldonado, certified financial planner at Aquila Wealth Advisors.

Savings accounts are making more payments, but you might ask yourself: But why should you keep that money in a savings account if it’s still not outpacing inflation? Planning Advisors certified financial planner Paul Collinson says emergency funds aren’t investments, so you shouldn’t be overly concerned about the low interest rates being paid on guaranteed deposits. “The main purpose of emergency funds is to reduce the need to use borrowed funds to cover unexpected expenses or sell assets in a down market. Choose an account that allows you to meet balance requirements while receiving competitive interest rates,” says Collinson.

Adequate cash reserves also have a psychological component. “Some people get stressed when he only has three months’ worth of cash on hand. It affects his peace of mind. For some reason, nine months sleeps well at night, so nine months is necessary.” is,” says Maldonado.