facebookIs the usual 6-month emergency fund enough if you face retrenchment? What factors should determine how much cash you actually need? - Seedly

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Debbie

26 Aug 2026

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Career

Is the usual 6-month emergency fund enough if you face retrenchment? What factors should determine how much cash you actually need?

Discussion (7)

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Enough is subjective.

my retrenchment was long and in close proximity to each other.

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first would be, would you be able to find a same paying job. If the answer is no, then, more.

next, so you have non monthly expenses that pops up as and when? If yes, more.

next, would you end up with a much lesser paying job? If yes, then more.

next, are you able to cut expenses immediately? No costly subscription that are contract bounded.

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6 months is a guide. Personally, i have much more. Like 2 years because of my personal experience.

6 months is a decent starting point lah, but if your job is less stable, better to keep a bigger cash buffer

Six months emergency fund not enough in times like this, need to have discipline in savings for months/years to prepare for emergency to last for a year while looking for permanent employment.

Hmmm, honestly, you probably need to factor in monies for your dependents, like children and parents. My parents lack financial planning and all, so I need to be their atm at times. Also, funeral is really expensive too based on experience.

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Thus, I just keep 100 k sgd as emergency fund.

I guess depends on how long retrenchment lasts. Any contingency expenses too?...

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