How much is enough?

[anlok]

Was talking to a few friends today & this discussion came up. Asking members here as GCA is suppose to be a mature crowd forum with better financial standing.

Given current economy (taking into consideration job lost risk & business instability), how much cold hard cash (excluding assets, stocks, PM or any other forms of investments as value is never stable) on hand gives you security?

Please vote a realistic amount base on your current financial standing & not base on a "never enough" mentality.

PS : Let's forget about monetary system collapse for now.

[Altima]

I thought it would depend on your current living standards?

Emergency cash thought should be at least 6 mths wages.

[anlok]

Originally Posted by anlok

Please vote a realistic amount base on your current financial standing & not base on a "never enough" mentality.

PS : Let's forget about monetary system collapse for now.

Originally Posted by Altima

I thought it would depend on your current living standards?

Emergency cash thought should be at least 6 mths wages.

It's normally recommended but personally I feel it's not enough. What happens if we can't get a comparable alternative income 6 months after losing the current one? Maybe for a salaried person, it's easier but for people running a small business like me, it might be much harder.

Personally I'll be looking for at least 12-18 months. To me, that's also a realistic amount I'm able to accumulate over the years of working. Of course, 12-18 years would be the best but that's an unrealistic thought.

Everyone has different emergency plans. That's how the discussion came about.

[daniel6886]

My flat fully paid with 2 dependent( kids)-12 months of emergency cash.

[anlok]

Originally Posted by daniel6886

My flat fully paid with 2 dependent( kids)-12 months of emergency cash.

Fully paid?! Wow. So what's your take on preferred amount of cash on hand? Make a vote please.

[daniel6886]

Originally Posted by anlok

Fully paid?! Wow. So what's your take on preferred amount of cash on hand? Make a vote please.

BTO flat. Last time buy cheap cheap only.

[Phantom]

At least 12 months worth of expenses for me

[lim]

I set aside 12 months of salary aside for emergency use.

Saving Zero as I like to buy alot of junk stuff and my spouse give up nagging (almost i think )

[anlok]

Seems like 12 months is a preferred choice compared to "recommended" 6 months. And the $50k - $100k is the most "realistic" amount so far.

[GoldScaraB]

Cash in bank max $50,000 as SDIC in effect.
50k for 12 months average 4.1k/mth. The average income of a statistical working adult. Depends on lifestyle is able to provide enough for 2-4 mouths.
If it takes 2 quarters of negative gdp to indicate a recession, 6 months of reserve barely cover the start of the beating technically. 12-18 mths seems appropriate compare to the general period of a economic recession.
How much amount is enough depends on total financial liability of individual along with family commitment if applicable plus total daily lifestyle expenses.
So the amount may vary.