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Cash reserves - how much is enough?

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Cash reserves - how much is enough?

Old 05-05-2011, 06:21 PM
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Default Cash reserves - how much is enough?

We are all sick and tired of living and hearing all the gloom and doom about the economy (tight credit, foreclosures, increasing oil prices, increasing unemployment, inflation fears, etc.).

So, how much cash should we set aside for a rainy day fund in this lousy economy? $10,000? $20,000? $50,000? How much cash should be set aside as a percentage of annual gross earnings? 5%? 10% More?
Old 05-05-2011, 06:47 PM
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Id say 6-12 months of your average expenses,pocket cash and etc.Should give you enough room to move things around without getting killed with penalties if you have to really change your lifestyle.
Old 05-05-2011, 07:00 PM
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Originally Posted by hanson View Post
Id say 6-12 months of your average expenses,pocket cash and etc.Should give you enough room to move things around without getting killed with penalties if you have to really change your lifestyle.
I agree, six months is good but 12 months is BETTER
Old 05-05-2011, 07:27 PM
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It all depends. If you are self employed or work for somebody...99 weeks Unemployment or $0.

Also depends if you have a good chance of finding a job in the near term. Just dont leave to much cash laying around not working for you, that could turn into a bigger mistake!
Old 05-05-2011, 08:15 PM
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minimum six monts expenses, and then a nice little reserve for the unexpected in life. shit will break, appliances etc.
Old 05-05-2011, 09:08 PM
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Short terms is what they said. I see long term as zero. Buy Charmin instead as it will be more useful.
Old 05-06-2011, 12:58 AM
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I'm cash poor and ammo rich. My concealed carry class teacher seemed fanatical about gun/ammo collecting and admitted his family gave him a hard time about it. They were at a family gathering one day ganging up on him and he turned to them all and said "when the s#!t hits the fan I wonder who you guys are going to run to". "That's what I thought".
Old 05-06-2011, 02:24 AM
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I have 6 months of my highest possible expenses including taxes and insurance on all of my toys and property into a separate bank account that doesn't get touched. 70% of what I earn goes into a joint bank account which we pay our bills from as well as any day to day and one off expenses such as going out to eat, the 250 bucks I shelled out for a car seat this morning , things along those lines. 30% (plus 100% of side ventures) I keep for myself to support my hobbies. I'm not much of a saver, and if it were up to me, Id live in a shack with water access and a much bigger boat living paycheck to paycheck. Fortunately, my better half counts pennies and its proved to be a good thing for our financial state.
Old 05-07-2011, 10:06 AM
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6 months of expenses in cash. With unemployment I can strecth that out to 10 months or so... 10%min into retirement. As much as I can into kids college funds... the rest is for play.
Old 05-07-2011, 11:43 AM
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6 months living expenses minimum, 12 months is better. Have your investments diversified so you don't lose all your eggs if one sector tanks.

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