I’m off topic once again, but this one is important. I often post about investing, and I still will. That is a more fun topic: investing vs saving. However, there needs to be both in your portfolio/account.
The question is: how much cash should you have saved up? You can always do your own research, but I think it’s wise to have some money put aside for between 3-6 months of living expenses. As an example:
- Housing costs: Rent or mortgage, property taxes, and utilities
- Food and groceries
- Transportation: Gas, car payments, insurance, or public transit fees
- Insurance premiums: Health, auto, or any mandatory insurance
- Healthcare expenses: Regular medications or medical visits
- Minimum debt payments: Credit cards, loans, or other obligations
- Essential personal and household expenses: Such as childcare, necessary clothing, and communication services (phone, internet)
Take a look at your credit card and billing statements, see where the necessary stuff lies….and what you could do without in an emergency. Save that up and put it somewhere safe (I personally like TBIL).
Once you know you have a safety net, then continue to filter more of the cash you have into your investments!
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