Suze Orman says there is “no substitute” for this simple movement of money.

For financial guru and best-selling author Suze Oman, saving is not only essential, but it also helps you sleep better and live better. (And, thankfully, some savings accounts are paying more than they have in the last decade. See the best savings account rates you can get here.)

“I’m all for investing money you won’t need for decades in low-cost stock index mutual funds and exchange-traded funds. Over the long term, stocks tend to generate higher returns than bonds and cash.” But I’m also a big fan of safe savings, and nothing beats the comfort of having money in a bank that won’t lose value in a bear market,” Orman wrote.

“It could be your emergency fund, or it could be money you plan to use for the next few years as a down payment on your home. Because we can send it,” Oman continued in 2018.

Additionally, Orman now recommends 8 to 12 months of previous savings. “My hope is that I will endeavor to have enough money to cover 12 months of essential living expenses, and I understand that this may take time. I also know that,” Ohman wrote this year.

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How much did you need to save for your emergency fund?

Most pros agree with Orman that savings are important and emergency funds are needed, but the amounts they say vary. Bankrate chief his financial analyst Greg McBride says that unplanned spending and income disruptions can strike at any moment, so emergency savings should be your life partner in adulthood. It says.

“Increasing emergency savings is particularly pertinent in a bear market, as it often portends or coincides with a recession, when the risk of job losses rises,” says McBride. In fact, saving enough to cover six months’ worth of spending is a good cushion for most people, but for individual breadwinners and the self-employed, a larger nine- to 12-month cushion is enough. Recommended, he says McBride.

Elizabeth Buffardi, Certified Financial Planner at Crescendo Financial Partners, recommends building two emergency funds. “You should always have at least 10% of your annual income in your primary fund. If you are self-employed or have multiple jobs, you may want to work more. The secondary emergency fund is for unforeseen circumstances, such as when your computer breaks down, or you have a bad storm and you have to pay for repairs to your home. We want to double that because of the triple whammy of three bad things happening within six months,” Buffardi said.

See the best savings account rates available here.

Ultimately, Mark Struthers, a certified financial planner at Sona Wealth Advisors, says consumers should think of comfort cash not only as a backup for unemployment or other emergencies, but as a reassurance. . “This allows me to sleep at night and even take more risk on long-term assets. Ignoring a 401(k) is not a good idea if you know you have three to six months to live on.” It’s a lot easier,” he says Struthers.

Of course, you don’t need much savings. ‘ said Jarrod Sandra, a certified financial his planner at Chisholm Wealth Management.

So beyond emergency funds, the right move is absolutely to invest, experts say. Sandra says investing is for the long term. “I usually tell my clients that at a minimum he needs to think about money in a five-year investment horizon.If he needs it within five years, he should consider another option.