How much % of your total liquid assets are in cash in your bank account ?
For me it’s like 30%
- What was your point? And how does you being an idiot prove it?
Inflation is risky. I’m not just making this advice up, this is what people with money and investment acumen do with their EFs after they’ve moved on from simplistic Dave Ramsey stuff.
- I keep mine in a standard FDIC 2% savings account that I can transfer to checking immediately, no wait time. I keep 6 months of living expenses there.
My total liquid assets are many multiples than 6 months of living expenses, so the peace of mind of having those in a secure savings account trumps any possible additional small interest that I could gain by fully invest that sum in more risky avenues. Just last year I had to write a 5 figure check (no credit card) for an emergency expense, and I didn’t even worry, since I had the liquidity right there.
I’d say if one worries about the interest generated by 6 months of living expenses you’re probably not making enough money and you’re probably not growing the rest of your nest egg fast enough, so you have other problems to worry about. In perspective, the interest generated by 6 months of expenses should be completely irrelevant.
I agree with public2, and the link you posted sounds as very bad advice to me. It’s called emergency fund for a reason. You can take risk with the rest of your portfolio, which should be massively larger than your EF anyway.Mar 109
- New VSwf0150%, we have enough cash to cover 240 months of expense.
For those who like to give unsolicited advice. Please don't tell me how to invest my money. Go earn yours and do with it whatever you wish.
- Facebook ae86tofuPercentage seems too high but what's more important is, like everyone else said, ~half year worth of expenses. Everything else is invested in something that's higher than the .05% or whatever you get in a bank account.