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

[–] yenahmik@lemmy.world 12 points 1 year ago

I personally have ~1 years worth of cash savings. I have it as an emergency fund plus slush fund for any big purchases so I won't have to sell my stocks. For instance, I was able to purchase a new HVAC for my house without having to move any money around or sell any investments. I've just been slowly replenishing my savings alongside investing since that purchase.

If I was you, I would definitely make sure I have at least 6 months savings and then maybe split investments/continued savings until I was at a point I was comfortable with in terms of savings (whatever it is that you decide that value is). Also, you say your savings account pays low interest. I would look to see if there are any High Yield Savings Accounts available in your country. Here in the US you can find accounts paying ~5% which is great for an efund.