facebookHow much savings should go into investing, or should the money used for investing be carved out as another portion from the salary? - Seedly

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Anonymous

30 Oct 2020

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General Investing

How much savings should go into investing, or should the money used for investing be carved out as another portion from the salary?

Discussion (4)

What are your thoughts?

Hi anon,
I saved about 25% of my income to make 6 months of expenses in a high interest savings account.
Then I portioned out about 10% to an endowment while putting the other 15% to make the 6 months of expenses become 6 months of income.
Now I'm not really growing my emergency funds as I believe it's enough le so I'm investing and not saving anymore. It doesn't make sense (at least to me) to forever be saving the same amount every month. That's opportunity cost lost there.

Opinon: what i did.
1) 1 lump sum from saving
2) DCA from salary

  • Emergency fund (in bank)
  • opportunity fund (in bank) - for market crash
  • salary - all expense (in equity) for DCA

You can check out seedl'y 50-30-20 guide. 20% goes to investments....

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