Andy Hagan recommends entrepreneurs keep at least a year of living expenses in liquid funds to avoid nervousness, while people in their early 20s can start with three to six months. Once you have that cushion, max out your 401(k) or IRA for long-term retirement savings.
I don't know that I have a hard and fast rule, but I would say as an entrepreneur, as someone who's self-employed, if I had less than one year's living expenses in liquid funds, then I would get nervous for sure. So maybe I do have a rule. It's just I don't know that I've ever been like close to that minimum where I really like started getting nervous or whatever. But I think that, you know, because, because again, when you're in your early 20s, I think having like a 3-month emergency fund or 6-month emergency fund is great. But at a certain point it's like, hey, make, make sure you're maxing out your 401 or IRA, right? So you kind of got to balance these things. So I also think personally, you know, there you pay a penalty. Like I've been conditioned to think like,
