Financial cushion in 2025: how much money is needed for confidence.

A financial cushion is an economic reserve that is necessary for every person, especially during wartime. It is an amount of savings that can cover basic living expenses for several months. News.LIVE has figured out how much money needs to be saved by 2025 for a sense of confidence in the future.

What is a financial cushion

A financial cushion is a cash reserve that helps a person survive during a crisis, such as job loss, medical treatment, repairs, or moving. Most experts believe that the optimal reserve is an amount that can cover expenses for 3 to 6 months.

To calculate the optimal size of the financial cushion for different income categories of Ukrainians, ranging from minimum wage to average, statistics of incomes as of June 2025 (24,609 UAH average salary, 8,000 UAH minimum wage) were taken into account.

Savings level at minimum wage

'If you need to calculate the size of the financial cushion at minimum wage, considering a reserve for 3 months, we get 24,000 UAH,' said financial analyst Oleksandr Ivanchuk.

Therefore, at minimum wage, the financial cushion for 6 months should be 48,000 UAH.

'Is this possible at minimum wage? Difficult, but possible. Therefore, we need to consider additional sources of income due to high living costs in cities,' said the expert.

Financial cushion at average salary

With a 'net' average salary of 20,000 UAH, the financial cushion for 3 months should be 60,000 UAH, and for 6 months - 120,000 UAH.

'It doesn't matter whether you earn minimum or high salary, what matters is to start forming a reserve for at least a month, and then increase this amount. The main thing is to act consistently,' emphasized the expert.

Contents of the financial cushion in 2025

When forming a financial cushion, it is important to consider the proper breakdown of savings, which will help avoid the risk of currency devaluation. It is optimal to have one-third to half of savings in UAH, another third in foreign currency, and 25% to 30% in government bonds (OVDP).

'It is optimal to have some savings in UAH, so it is available for everyday needs. Some in foreign currency - for investments or expenses abroad,' explained the financial analyst.

Regarding government bonds (OVDP), it is a popular and reliable tool for saving money that can be used as an alternative to deposits, with maximum profitability.

Advantages and disadvantages of the financial cushion composition

'Each element of the financial cushion has its pros and cons. You need to be realistic and approach the choice of components thoughtfully,' added the expert.

Among the positive aspects of keeping money in UAH - instant access and the ability to keep it on a card or deposit. Among the disadvantages - inflation and the risk of devaluation. Regarding foreign currency, the advantage is protection from devaluation and convenience in expenses abroad, while the disadvantage is currency risks and conversion fees.

A financial cushion is an important factor for financial stability that helps a person cope with negative financial situations. The size and composition of this reserve can vary depending on income, but it is important to start forming it today, following the recommendations of specialists and wisely distributing your savings.