Anonymous
I am holding 6 months worth of expenses, but am thinking of investing it in Grade A bonds to let it grow faster than if I leave it in my high-yield savings account. I know off-hand it sounds like a bad idea as there's a chance of a loss, but I am very confident I will not need the money anytime soon in the next 3 years.
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Alex Chua
25 Feb 2020
Seedly student Ambassador 2020/21 at Seedly
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Your bar for emergency funds might be too high then. Either your 6 months expenses have been overstated or your assets for 6 months is over stated.
Emergency funds are the minimum amount you need to not sacrifice your lifestyle between 6 months to a year.
Relook at the numbers and you should be able to come up with a better number for emergency funds.
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An emergency savings is called emergency savings for a reason. You might never know, although nobody wishes for bad things to happen to us, but it never hurts to be prepared for it. From things like car accident, house repairs to losing your job, an emergency fund is there to help you to tide over those difficulties. the best way to store your emergency fund is to put it in a high savings account like cimb fastsaver where you can withdraw anytime.
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Jason Sing
24 Feb 2020
School Of Hard Knocks And Life at School Of Hard Knocks And Life
You should not invest your emergency savings since this should only be used for emergency purposes. However, you could put your emergency savings in fixed deposits or Singapore Saving Bonds since they are more liquid and could withdraw readily without any loss to your capital.
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Joe Lee
24 Feb 2020
Adventurer at Game of Life
I know it doesn't sound like you will need to use your emergency savings, but you cannot predict the...
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There is a role to play for emergency savings so why invest?
If u want to invest your emergency saving, redefine your emergency savings as e.g 4 months worth of expenditure. The balance then go to your warchest.
Warchest by consensus definition here is to be ready to deploy to your investment
Scenario :
Touch wood, u r hospitalised. Can u use the money invested in your bonds immediately?