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Philly fishbowl happy hour after Covid???
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Chief
Is still travel overrated?
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Pro
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The White House is currently on lockdown
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Rising Star
2 years worth of expenses I can liquidate pretty much immediately. Lived through 08-09 recession and learned. I have additional complexity to my situation tho. If I lose my job I have to leave the country and start over somewhere else
That’s a great motivator.
Pro
Yes. 2 years of expenses. 28 years old. Saved early and often.
Yes. Rainy fund is 6 months worth of all bills and expenses for food etc. This is without liquidating investments or touching my savings.
You all are my motivators to start saving aggressively. Thank you for sharing this information.
I feel like “savings” and “rainy day fund” aren’t quite the same. In my mind, rainy day fund is a subsection of savings being in cash. With that being said, I keep about 6 months cash (I’m extremely frugal) and then have a few years worth of living expenses in non retirement accounts. Grew up poor.
Why cash on hand at home?
I keep 9 months in cash in an interest bearing account. I know this seems like too much to some but I have a brokerage separately for my play money.
While I don’t disagree about opportunity cost, we are adding trillions of debt and any meaningful inflation/increase in rates would crush the market value of the portfolio since the fmv moves inverse to rates.
Chief
Dual income household. 6 months of regular expenses if both incomes evaporate. 12 months if only 1 does. Those durations factor in significant discretionary spending cuts. $100-120k.
Pro
6 months of conservative living expenses are liquid. Everything else is in various investment vehicles with a long term strategy in mind
Rising Star
6 months. But I actually have 2 years because been saving up for a down payment.
I'm working on putting away 6 months of expenses in a high yield savings account now. My IRA/401k/etc is separate savings that wouldn't be touched.
CIT Savings Builder has a 1.45% APY with either $100 month contribution or $25k balance. This is what I use.
Rising Star
I could stretch my severance, unused PTO, and unemployment over 10 months. Still have more in cash, but don't expect I'll need it.
Severance? Did you have a covid-19 related lay off?
Do you keep your rainy day fund in a high yield savings (most I know are online banks) that will take a few days to transfer, or like a local bank where you can withdraw instantly (not atm but in person)?
I have cash at home equivalent of 3 months of my rainy funds stored in a safety box.
About 1 year and growing .
I’m American and have seen first hand how an unexpected health crisis can competently destroy the finances of families here. That motivates me as well.
Pro
I came across this post as soon as I was about to online shop. Now I’m stressed out about my future!!!
Chief
Bout 100k
🙌🙌🙌🙌🙌🙌
I have 6 months of expenses saved but it’s literally all I have. 😬
Rising Star
https://www.moneyunder30.com/beginners-guide-to-saving-for-retirement
think this might be a good overview and place to start. though don't necessarily trust her pushing of Betterment at the end. i'm lazy and risk-adverse, my retirement money is invested in a vanguard target date retirement fund that has low overhead fees and automatically adjusts the investment risk (i.e. mix to stocks and bonds) as you get closer to the retirement year.
10+ months in cash. Been a habit for the last few years now