Dry Powder … How much do you need?

The usual amount of emergency funds recommended is 3-6 months expenses. This is the standard answer and works good, but there area always exceptions.Emergency Funds

Dry Powder/Emergency Funds Amounts

You finally started that long-awaited home improvement project (bathroom, kitchen…you know the one) – Rarely have we met anyone who says “That project came in under budget!” — beef that dry powder up before the project.

Times are good… a few dependents have left the house and the payroll. Work is great and you are having fun. You may want to take that dry powder down to a lower amount, especially if you are on the high-end of monthly expenses.

It was a great year … and the W-2 shows it, one of the best ever. Keep a little extra dry powder is a good idea… Uncle Sam tends to surprise at the most inconvenient time.

You just do not feel great without a large amount of dry powder/emergency funds. Do not fret, it’s ok, keep extra … it is not worth losing sleep over!

Hope this helps … just a few situations!

Have a Great Day!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225

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