Personal Finance

3824 readers

1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago

MODERATORS

WandererLagomorph799@lemmy.ml

nieceandtows@programming.dev

nieceandtows@lemmy.ml

[EU] How many months savings do you consider enough? (lemmy.world)

submitted 1 year ago* (last edited 1 year ago) by what_is_a_name@lemmy.world to c/personalfinance@lemmy.ml

21 comments fedilink hide all child comments

As the title says I am trying to see where people stand on this. Obviously this is all personal preference. But that is what I am after.

After depleting our savings when buying our apartment 2 years ago, we’re about to cross 6 months liquid savings in just plain old savings account with ability to immediately withdraw money.

(To clarify that is 6 month assuming 0 income, which is very unlikely given the social system of our country - so realistically we have even more in savings.)

As you can imagine, the interest in this account is not great, so I want to set a limit as to when we stop dumping every spare penny into the savings account and begin doing other things (likely try to invest).

you are viewing a single comment's thread
view the rest of the comments

[–] Wooster@startrek.website 11 points 1 year ago (1 children)

Personally, as a rule of thumb, I don’t think you can have enough in savings.

Our society is built upon going into debt… and I’d rather pay up front for things like a replacement vehicle or heater/pump or what have you, which means having enough to survive on—as you are inferring—and enough to survive Murphy making an unannounced and unwelcome visit.

[–] severien@lemmy.world 10 points 1 year ago (1 children)

The point of the question is how much money does one need in a liquid form as opposed to less liquid investments.

[–] Wooster@startrek.website 2 points 1 year ago

A fair point.

Personally, I use ‘savings’ as a catch-all for any form of money you have no intention of spending frivolously. Be that in savings, stocks, or other forms of investment.

I’ve got a relative who saw anything beyond the 6 month mark as spending money. I don’t know what form his investments manifested in, but it clearly didn’t work as he’s in financial do-do, and it’s an unpleasant topic amongst the family.