Dave Says: The Idea’s the Same

Dave RamseyBy Dave Ramsey1 Minutes

Dear Dave,

I own a small business. How much should I have in a business emergency fund when my annual sales are around $100,000? Currently, I have two months of expenses set aside.

— Theresa

Dear Theresa,

Generally, I like the idea of small businesses having about six months of expenses on hand. That kind of cushion usually eliminates the need for borrowing money. It also provides peace of mind. And if you’ve been an entrepreneur very long, you know that’s an invaluable thing.

Having a personal emergency fund set aside is a little different than having one in place for your business. When it comes to personal finance, I recommend having three to six months of expenses set aside. The basic idea is the same, though. A fully funded emergency fund gives you an option—besides debt—when unexpected things happen!

— Dave


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Dave Ramsey

Dave Ramsey founded Ramsey Solutions in 1992 to provide “biblically based, common-sense” financial education. He is a best-selling author and sought-after speaker. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Learn more at daveramsey.com

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