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[quote=Anonymous][quote=Freeman]You should also take your particular situation into account. My wife and I both work in completely different fields, so the odds of losing both incomes at the same time are extremely slim. Our goal is to have enough in savings to cover 4-6 months of expenses in that event. We also try to keep our expenses low enough so that the loss of one income, at least temporarily, wouldn't require us to dip into those savings. To the PP, it doesn't need to be a fully liquid account either, since you aren't going to need all six months at once. Ideally, you'll never touch the money, so you may as well have it somewhere that will generate some returns.[/quote]

I agree with this.  Another thing to consider is whether you have long term disability insurance and whether you are going to need to dip into savings for things like maternity leave or house emergencies.  We have about ten months of necessities in emergency savings - that includes mortgage, food, utilities.  We also keep our necessities relatively low so that we can pay necessities on one income.  The second income pays things like daycare, private school, kids activities, vacations, etc.  we also try not to borrow money for anything.  [/quote]

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