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Message
Recommended emergency fund amount in months/years
Posted on 3/22/23 at 5:09 am
Posted on 3/22/23 at 5:09 am
How much do you currently have liquid for an emergency fund in terms of months/years? How much do you recommend?
I currently have 2+ years liquid and the equivalent in the market, I'm practically 50/50 liquid/investment. This is not exactly by design. I moved across states a year ago, bought a house, and started a new job. The job is a flaming piece of shite and scares me from a security standpoint (construction). My plan was always to reduce the liquid amount to a years worth emergency fund, and invest the rest. With the current state of the market and economy at large I'm thinking cash might be king for a while. Am I an idiot for thinking this?
I currently have 2+ years liquid and the equivalent in the market, I'm practically 50/50 liquid/investment. This is not exactly by design. I moved across states a year ago, bought a house, and started a new job. The job is a flaming piece of shite and scares me from a security standpoint (construction). My plan was always to reduce the liquid amount to a years worth emergency fund, and invest the rest. With the current state of the market and economy at large I'm thinking cash might be king for a while. Am I an idiot for thinking this?
This post was edited on 3/22/23 at 5:13 am
15
Posted on 3/22/23 at 5:30 am to themasterpater
Currently my emergency fund covers 8 months of all my monthly bills. Keep enough cash in checking to cover a few months. The rest is invested in market with about 20% cash there for big drops. To answer your question would say 6 to 8 months emergency fund if in steady job. As far as the market now is the time to start some small positions on good/great companies. The only cash i keep is for opportunities when the market takes a big dip like with the banks recently. Not really a guy who just sits on a bunch of cash.
Posted on 3/22/23 at 6:32 am to themasterpater
quote:
Am I an idiot for thinking this?
Not at all. You know your financial needs better than anyone else. If you need 2+ years worth of cash flow fully assured—particularly in a high-risk employment situation, then it seems you’ve made a prudent decision.
Posted on 3/22/23 at 6:37 am to themasterpater
quote:
With the current state of the market and economy at large I'm thinking cash might be king for a while. Am I an idiot for thinking this?
It’s understandable to feel this way, but know that with the benefit of hindsight, cash is rarely king when it feels like cash is king. In other words, this is often the sentiment when at/near the bottom of the markets.
Posted on 3/22/23 at 7:09 am to themasterpater
We are banking liquid $50k.
10k in checking and $40k in savings.
We normally build up the savings and then go cash on an automobile. I will need a car (2007 Honda Accord with 218,000 miles). But I want to run this into the ground and skip a car buying cycle if possible.
Unfortunately for the last several months, we've been bleeding out of the savings and not building it up. Inflation. And family stuff (my son went to the state vex robotics tournament and now is going to world's. My folks just had their 50th wedding anniversary celebration. Etc..)
Know your personal situation and go from there. We stay fairly aggressive in investments/retirement. But our monthly bills are low and we keep a decent amount liquid on hand.
10k in checking and $40k in savings.
We normally build up the savings and then go cash on an automobile. I will need a car (2007 Honda Accord with 218,000 miles). But I want to run this into the ground and skip a car buying cycle if possible.
Unfortunately for the last several months, we've been bleeding out of the savings and not building it up. Inflation. And family stuff (my son went to the state vex robotics tournament and now is going to world's. My folks just had their 50th wedding anniversary celebration. Etc..)
Know your personal situation and go from there. We stay fairly aggressive in investments/retirement. But our monthly bills are low and we keep a decent amount liquid on hand.
Posted on 3/22/23 at 8:36 am to Grooler
Yeah, thanks for that. Any other opinions on how to quasi-invest but still stay liquid. CD ladder?
Posted on 3/22/23 at 9:00 am to themasterpater
High yield savings
Posted on 3/22/23 at 9:22 am to themasterpater
The market is just gonna keep getting worse because it relies on people constantly putting money in to keep going up. Somehow the boomers were tricked into continuously putting money in, but now that millenials are doing all the work that is going to stop. For two reasons, one is because half of us work at Starbucks or drive an Amazon truck, the other reason is because it’s always been high for us and we’ve suffered through like 6 crashes in our careers and don’t trust it anymore
The dream is dead bro, have nothing and be happy like they want you to be
The dream is dead bro, have nothing and be happy like they want you to be
This post was edited on 3/22/23 at 9:23 am
Posted on 3/22/23 at 9:30 am to themasterpater
Depends on your situation. If you are a dual income household and both have solid job opportunities, I think 3 months makes sense.
If you are a single income household supporting a family, I think 6-9 months makes more sense.
If you are a high risk, highly volatile income situation like commission only, a couple years makes sense.
If you are a single income household supporting a family, I think 6-9 months makes more sense.
If you are a high risk, highly volatile income situation like commission only, a couple years makes sense.
This post was edited on 3/22/23 at 9:33 am
Posted on 3/22/23 at 9:49 am to notsince98
I'm a single guy with no family to support, but obviously the only person bringing in the money. Not in a commission structure payment arrangement, just seen some red flags at work that concern me.
Posted on 3/22/23 at 9:59 am to el Gaucho
quote:
For two reasons, one is because half of us work at Starbucks or drive an Amazon truck, the other reason is because it’s always been high for us and we’ve suffered through like 6 crashes in our careers and don’t trust it anymore
The dream is dead bro, have nothing and be happy like they want you to be
I bet you're fun at parties. Asking for real help here, not some negative bs. I don't need a sky is falling opinion.
Cycles have been going on since the 1800's, I doubt this time is all that different when you look at it through that lens. I'm trying to plan as if someday the grey skies will clear and how to position myself in the interim.
Posted on 3/22/23 at 10:10 am to themasterpater
That's el gaucho. He brings heavy sarcasm with a bit of truth in what he says. His delivery is to be appreciated and not taken too seriously.
He's the Jackson Pollock of TD. Just throwing words on his canvas to see where they stick.
He's the Jackson Pollock of TD. Just throwing words on his canvas to see where they stick.
This post was edited on 3/22/23 at 10:12 am
Posted on 3/22/23 at 10:27 am to WhiskeyThrottle
Fidel Castro once said “history will absolve me.”
I think very few of us are just fat where serious stock market investing is ever gonna amount to anything and the days of handing money over to the Edward Jones man for 40 years and getting rich are over.
Short term? Stay liquid
Long term? Invest in yourself. Take some cash and put it into something where you can run a cash side hustle. If you need a car now buy it rather than deal with unreliable transportation hurting your ability to make a living. Inflation is going to stay rampant.
Our lives will be harder than our parents’ were
I think very few of us are just fat where serious stock market investing is ever gonna amount to anything and the days of handing money over to the Edward Jones man for 40 years and getting rich are over.
Short term? Stay liquid
Long term? Invest in yourself. Take some cash and put it into something where you can run a cash side hustle. If you need a car now buy it rather than deal with unreliable transportation hurting your ability to make a living. Inflation is going to stay rampant.
Our lives will be harder than our parents’ were
Posted on 3/22/23 at 10:35 am to el Gaucho
Okay I'll bite, what makes you think the sky is falling and our lives will be more difficult than previous generations
Posted on 3/22/23 at 10:39 am to themasterpater
More than half of the working age people in this country don’t work and we pay for their every expense. They eat better food than we do and they drive nicer cars than us. They reproduce way faster than us too.
How many parasites can the host handle before it dies?
How many parasites can the host handle before it dies?
Posted on 3/22/23 at 10:51 am to themasterpater
quote:
themasterpater
Just ask
quote:if you have a reserved spot in the FEMA camps when the time comes. If you do, then you are all set but if not then you need to take action to get on the list.
el Gaucho
This post was edited on 3/22/23 at 10:52 am
Posted on 3/22/23 at 11:09 am to el Gaucho
quote:
More than half of the working age people in this country don’t work
Isn't unemployment low? Where is your proof of this? Or are you just a grouch y old frick, get off my lawn, no one works anymore type?
Posted on 3/22/23 at 11:12 am to bod312
quote:
if you have a reserved spot in the FEMA camps when the time comes. If you do, then you are all set but if not then you need to take action to get on the list.
If he’s posting here he’s good. We’ve all been on the list since they took down the Q thread
Posted on 3/22/23 at 11:15 am to themasterpater
quote:
Isn't unemployment low? Where is your proof of this? Or are you just a grouch y old frick, get off my lawn, no one works anymore type?
I’m probably younger than you but yes I’m one of the few people that still works and I’m the only person without an ebt card
ETA: as far as the unemployment numbers, that’s a fake government number same as how they say inflation is like 6% when it’s clearly more than 100%. Just look at meat and tallboys
This post was edited on 3/22/23 at 11:19 am
Posted on 3/22/23 at 11:16 am to el Gaucho
You are depressing. I do have a full-time job, and have had for a decade. I'm 33.
This post was edited on 3/22/23 at 11:23 am
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