I would recommend actually between 3 - 6 months worth of rainy day funds (liquid cash sitting in bank) before starting on your investments.
These 3 - 6 months worth of MONTHLY COMMITTED EXPENSES for you just in case when you have to tide over unforeseable events such as:
- Sudden job loss (retrenched or quit) for you to hunt for your next one
- Medical conditions (where you can suddenly lose your income, one community member had to leave his job because he had some kidney failure incident and could no longer work the long hours he was working at)
Monthly commited expenses include things you already have to pay like a FIXED EXPENSES:
- General food consumption (e.g $15 a day)
- Transport related stuff MRT Taxi etc. (e.g $100 a month)
- Utility bills (water, electricity)
- Rent (if you have)
- Insurance Premiums (this one is very important, dont miss your payment set it up on GIRO)
Basically food and shelter stuff! Things if you don't have you may not be able to live. A peace of mind is very important! Before you look at growing your wealth portion - Accumulation part.
I would recommend actually between 3 - 6 months worth of rainy day funds (liquid cash sitting in bank) before starting on your investments.
These 3 - 6 months worth of MONTHLY COMMITTED EXPENSES for you just in case when you have to tide over unforeseable events such as:
Monthly commited expenses include things you already have to pay like a FIXED EXPENSES:
Basically food and shelter stuff! Things if you don't have you may not be able to live. A peace of mind is very important! Before you look at growing your wealth portion - Accumulation part.