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Anonymous
Like for daily expense, I need to set aside money used for expenditure, bills etc? And for how long? Like 3 months worth of expenditure etc? Should I also leave some for bank saving interest?
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Besides setting aside the emergency fund (1 years worth is quite gd and safe), also make sure to
1)Pay off any high interest debt first e.g credit cards
2) Not invest money needed in the near future into risky assets like stocks e.g. down payment for a house, budget for car, marriage etc (move into fixed deposits, bonds, high yield savings)
3)Monthly expenses can be covered e.g. bills/insurance
U could either set aside some money on top of emergency fund to handle monthly expenses and for extra liquidity or possibly even use some of the fund to cover, though usually not recommended as emergency fund is meant for emergencies
How much to set aside depends on yr risk tolerance and needs, one can never be too safe, but then too much set aside will incur opportunity costs of growing