30 Nov 2019
And how much "emergency savings" does a person typically need on hand?
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29 Nov 2019
Associate at Kristal.AI
Emergency savings typically has 4-6 months of your expenses to be used in case of an unforseen situation. In order to make my budget, I prefer the 40/30/20/10 rule. 40 percent of the income can be used in regular monthly expenses such as rent, food, electricity etc. Not more than 30 percent shall be used to pay off loans including mortgage, education etc. 20 percent will be used to prepare for the future like retirement in long term investments. The remaining 10 percent will be used to cover inurance needs.
In this case, since you want to buy a house in the future, you can redirect you 30 percent for loan repayment in safe investment options so that you can buy a house with it in the near future. Taking too much risk in the portion will be too risky as investments are volatile in the short term.
I work at kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.
Hariz Arthur Maloy
07 Jun 2019
Independent Financial Advisor at Promiseland Independent
Minimum to save would be 20% of your income into assets that beat inflation.
Housing price I'd keep...
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