facebookJust wondering, is there anyone out there who's like me, investing without having an emergency fund set aside? Is it really that dangerous? I'm only investing in robos now though? - Seedly

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Anonymous

02 Nov 2020

Robo-Advisors

Just wondering, is there anyone out there who's like me, investing without having an emergency fund set aside? Is it really that dangerous? I'm only investing in robos now though?

I'm a fresh grad on a traineeship drawing $2.5k, investing $850 in robos.

Discussion (22)

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My suggestion for you is to continue investing and concurrently build up your emergency fund. You can achieve this easily by reallocation your contribution. By doing so, you wouldn't be losing out potention investment gain and also have a peace of mind.

You're young so you can afford to do that. if you're married with mortgage, kids and car then you shouldn't be doing so.

when you're young, your risk tolerance will be a lot bigger so go for it. :)

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Hi anon!
Personally I do not think it is considered "dangerous" as robos are pretty much diversified. And I've also started using robos before saving up for my emergency funds. However, do take note that the amount you've invested has to be comfortable for you NOT to withdraw it out because you have obligations to meet.
Emergency savings is just as important as investing, while it is good that you started early, it is also wise to start building your emergency funds asap as well. :)

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I would suggest not to do that. You should only start investing when you have a portion of cash as an emergency fund. We'll never know what might happen so it's still best to have some kept aside if needed. Do try to save some monthly, while DCA-ing in your robo-investment too.

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HC Tang

29 Oct 2020

Financial Enthusiast, Budgeting at The Society

Not dangerous.

The purpose of emergency cash is to cover your expenses / installment in event on lo...

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