For the 50-30-20 Allocation Rule where 20% is for savings, what if we have reached the max of our emergency fund? Do we still continue to keep 20% as savings or it moves into investment portion?

It depends on your current situation and your planning for the future. If you do not need more emergency funds or short-term liquidity, then channel it into other financial instruments that is capable of helping you reach your goals.

Generally, we will want to have 3 to 6 months of total expenses as emergency fund. However, this depend on individual circumstances.

Here is a Guide:

Understanding Your Personal Cash Flow

That being said, you should be comfortable with what you are investing into before you start. This is because investment yields only non-guaranteed returns. Therefore, do ensure that you have a minimum margin for safety.

More Details:

Types of Investment Risk that You should know

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Hi anon,

In this uncertain economic climate, I would suggest having at least 12 months of your expenses as an emergency fund. Once you've reached it, you can just move your 20% into your warchest. A suggestion would be to start investing with 10% of your cash flow and park 10% into your warchest every month. This way, you will be able to get yourself to start investing, as the fear of going in during a crisis is what keeps many people from even starting.