3 Priorities for Avoiding the Potholes on the Road to Recovery

At the high end, reserves should not exceed the amount of two years' budget. At the low end, reserves should be enough to cover at least one full year of payroll expenses. When my own wallet gets squeezed, I am reminded to go back to my budget, take a look at my financial plans (retirement, savings, short-term wants and immediate needs) and reprioritize my plans for the future.