I often come across finance articles that advise people to save up to six months' worth of their monthly expenditures in an emergency fund. The idea is to have funds Handy when a person goes through some financial difficulties such as loss or diminution of income due to unemployment, business losses, or even health issues. The rest of the savings, they say, should go to investment. However, having gone through a period of unemployment for a year, I know that six months' worth of emergency fund is not enough at all. I'd prefer to have at least $100,000 in savings/emergency fund before I can even think about investing in stocks/mutual funds or other forms of investment. What do you think?
I would feel financially secure and future proof if i were to save up as much as a 10 year's salary worth.
Money is something that will never make you content, therefore, how much you save, you can hardly be contented with your saving. Instead of saving cash, I prefer to make safe investment. Investment gives good returns in stead of cash savings. Instead of piling a wad of currency in your safe locker or putting money on you rbank account, it is better to buy property or gold that gives good returns compared to cash saving. Setting up an emergency fund is ok, but when misfortunes occuor, any big amount will neve be enough.
This is a very tricky question to be answered basically because everyone has different needs (some fixed and some unexpected), so... I can't say an exact amount. I always keep a reservation at home (and at the bank), but I don't set limits.
That's a pretty good question, thought I am sure regardless of how much money I will have I will come across some sort of issue in the future. For me I would at least want between $250,00-$700,000 saved up just to feel a little secure. I hopefully could invest that money into something useful that will make me more in the future.
For a couple, the amount of money to sustain us in our retirement years is $200k at least. And that excludes rental since we have our own home. Right now we are still working for that amount. The issue that scares me is the rapid devaluation of our money. The Philippine peso is now more than 50 to 1 usd. We are considering to save in usd currency to have a stable amount.
