30yo, i've set aside 20k in FD for emergency funds. Is this amount too big? I don't have kids, don't have high expenses. Am wondering if this amount is too much?

I have incurred interest from my principal and am wondering if i should reduce this amount and invest part of it to investments.

Discussion (22)

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Cryotosensei

02 Apr 2023

Blogger at diaperfinancingfund.blogspot.com

If this $20k makes you sleep peacefully at night, why not? Everyone's comfort level is different. You can start channeling whatever money you save now into investing. Not every dollar needs to be optimised.

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Choon Yuan Chan

01 Mar 2023

Think it might be too high. Just set it to 6 months of your expenses

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25 Feb 2023

How far ahead do you think this emergency is gonna happen would determine the horizon of FD I guess.

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Just_Saying

16 Feb 2023

You should not place emergency funds into FD, as they are not liquid enough when you need the cash.

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Pet N

14 Feb 2023

20k sounds fine... I set aside about there as well but there is a penalty if you have to withdraw it...

Write your thoughts

27M- i have 6 months of income stashed away as emergency funds. i also have 6 investments comprising of a range e.g bonds,etf, ilp. i also have money set aside for big expenses like house etc?

Been seeing different accounts of how much emergency funds to put aside, some saying 6-12 months expenses while others preach 6-12 months of salary. How much is too much emergency funds ?

I'm in my 30s, so after setting aside emergency funds, I have an excess of 20k. How can I maximize 20k?

Quick survey: How much do you set aside for your emergency fund (including discretionary spending)?

What is a good amount to set aside as an emergency fund for my firstborn?

27M- i have 6 months of income stashed away as emergency funds. i also have 6 investments comprising of a range e.g bonds,etf, ilp. i also have money set aside for big expenses like house etc?

Been seeing different accounts of how much emergency funds to put aside, some saying 6-12 months expenses while others preach 6-12 months of salary. How much is too much emergency funds ?

I'm in my 30s, so after setting aside emergency funds, I have an excess of 20k. How can I maximize 20k?

Quick survey: How much do you set aside for your emergency fund (including discretionary spending)?

What is a good amount to set aside as an emergency fund for my firstborn?