No, it serves as a metric. Many people treat their income (or their income minus what they’ve decided to save) as a budget where they must fit expenses. (Except some rare expenses which are allowed to eat savings.) So “six months of income” is immediately grasped, whereas “six months of typical spending” requires computing your average expenses and hoping nothing unusual happens.
No, it serves as a metric. Many people treat their income (or their income minus what they’ve decided to save) as a budget where they must fit expenses. (Except some rare expenses which are allowed to eat savings.) So “six months of income” is immediately grasped, whereas “six months of typical spending” requires computing your average expenses and hoping nothing unusual happens.
I think either number is fine. Ballparked. The better your financial tracking the more complicated the number can be.