facebookShould a person with zero savings start investing, while also saving on the side? Trying the 50-30-20. Or should I save at least 6(or more) months of income first? Insurances all settled already.? - Seedly

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Anonymous

13 Oct 2020

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Should a person with zero savings start investing, while also saving on the side? Trying the 50-30-20. Or should I save at least 6(or more) months of income first? Insurances all settled already.?

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Cryotosensei

09 Jul 2023

Blogger at diaperfinancingfund.blogspot.com

Why not? I invest $50 into Syfe's REITs portfolio every month. I think saving n investing at the same time makes me more motivated to go out there n find more money

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Hello :)

I believe that a person should definitely save at least 3-6 months of income first before considering investing.

This 3-6 months of income forms your emergency fund. It is there primarily as a safety net to protect you in case of a loss of income due to job loss, or a sudden need for cash due to a large expense. This emergency fund needs to be liquid — you can assess it whenever you need it urgently.

The wealth used for investing should be above and beyond the emergency fund so that you are not forced to liquidate your investments when you need cash.​​​

You can save and invest at the same time. But do try to skew your allocation more towards savings if...

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