Dazed&Confused
Registered User
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- 16
Hi folks,
From reading on AAB as well as other sites, the general rule of thumb for an emergency fund is up to 6 months of living expenses. From my very fortunate perspective, that seems excessively risk-adverse & not the best use of cash… Any insights on what would be a more suitable approach for a relatively “safe” dual income family?
Background: I am the primary earner (60% of the family income) working in a global role for a growing division of a large healthcare multi-national – v. low business risk. My partner (30% of the family income) is part-time in a large pharmacy retail chain in a growing new store. Extra hours can be easily found in the current business or as a locum. 10% of our income comes from a mix of sources: rent, dividends, capital gains & children’s social welfare. We have 3 kids ranging from 2 to 8 years old.
I would see our incomes as relevantly “safe”. In saying that, I worked in the aerospace industry (in my first job) when 9/11 happened & saw the economic impact overnight. I appreciate there is risk to every industry – some known & some unknown.
Eager to hear different perspectives on what a suitable level of an emergency fund is?
D&C
From reading on AAB as well as other sites, the general rule of thumb for an emergency fund is up to 6 months of living expenses. From my very fortunate perspective, that seems excessively risk-adverse & not the best use of cash… Any insights on what would be a more suitable approach for a relatively “safe” dual income family?
Background: I am the primary earner (60% of the family income) working in a global role for a growing division of a large healthcare multi-national – v. low business risk. My partner (30% of the family income) is part-time in a large pharmacy retail chain in a growing new store. Extra hours can be easily found in the current business or as a locum. 10% of our income comes from a mix of sources: rent, dividends, capital gains & children’s social welfare. We have 3 kids ranging from 2 to 8 years old.
I would see our incomes as relevantly “safe”. In saying that, I worked in the aerospace industry (in my first job) when 9/11 happened & saw the economic impact overnight. I appreciate there is risk to every industry – some known & some unknown.
Eager to hear different perspectives on what a suitable level of an emergency fund is?
D&C