Hello seedly, how can i know how much is too much savings? I do not want to be over saving, i have already saved my emergency funds. 6 months of income.

The question of "over-saving" is one I frequently encounter, especially among young professionals in Singapore. It's not just about the numbers - it's about optimizing your money's potential while maintaining financial security.

Recently, I worked with a client who had accumulated over 24 months of expenses in savings, far beyond their emergency fund needs. By implementing a structured capital deployment strategy, we transformed this excess liquidity into purposeful investments aligned with their life goals.

Let's address a common misconception: "More savings equals better financial security." In reality, excessive cash holdings can lead to opportunity cost and value erosion through inflation. Here's a more strategic approach:

Liquidity Framework:

1. Core Emergency Fund

• 6 months of expenses (not income)
• High-yield savings account
• Immediately accessible

1. Opportunity Fund

• 3-6 months additional savings
• T-bills or fixed deposits
• Semi-liquid for opportunities

1. Investment Allocation

• Regular monthly investments
• Dollar-cost averaging
• Goal-aligned portfolios

Strategic Deployment:

1. Map Your Goals

• Short-term (1-2 years)
• Medium-term (3-5 years)
• Long-term (5+ years)

1. Create Purpose-Driven Buckets

• Emergency cushion
• Major purchases
• Investment opportunities
• Life goals

1. Implement Investment Timeline

• Monthly investment schedule
• Opportunity fund deployment
• Regular rebalancing

The key isn't just saving - it's strategically allocating capital to serve different purposes in your financial journey.

For more insights on building a purposeful wealth architecture and optimizing your capital deployment, follow me on Instagram (@ngooooied) where I share frameworks for navigating these financial decisions.

There is never too much, esp if you have kids

Depends on which stage of life you are in and your risk profile. If you are risk averse, you could be investing in fixed deposits, T-bills and SSB. On the contrary, if your risk threshold is high, you can divert the excess fund in equities, ETF, unit thrusts, etc.

Buy