As the title says I am trying to see where people stand on this. Obviously this is all personal preference. But that is what I am after.
After depleting our savings when buying our apartment 2 years ago, we’re about to cross 6 months liquid savings in just plain old savings account with ability to immediately withdraw money.
(To clarify that is 6 month assuming 0 income, which is very unlikely given the social system of our country - so realistically we have even more in savings.)
As you can imagine, the interest in this account is not great, so I want to set a limit as to when we stop dumping every spare penny into the savings account and begin doing other things (likely try to invest).
Personally, as a rule of thumb, I don’t think you can have enough in savings.
Our society is built upon going into debt… and I’d rather pay up front for things like a replacement vehicle or heater/pump or what have you, which means having enough to survive on—as you are inferring—and enough to survive Murphy making an unannounced and unwelcome visit.
I personally have ~1 years worth of cash savings. I have it as an emergency fund plus slush fund for any big purchases so I won’t have to sell my stocks. For instance, I was able to purchase a new HVAC for my house without having to move any money around or sell any investments. I’ve just been slowly replenishing my savings alongside investing since that purchase.
If I was you, I would definitely make sure I have at least 6 months savings and then maybe split investments/continued savings until I was at a point I was comfortable with in terms of savings (whatever it is that you decide that value is). Also, you say your savings account pays low interest. I would look to see if there are any High Yield Savings Accounts available in your country. Here in the US you can find accounts paying ~5% which is great for an efund.
