I suppose we’re not opposed to risk. We’ve done quite well with that mindset, so no plans to change. I only keep working capital accessible, so about $200 here at home at any one time - mainly so we don’t have to stop at the bank or use ATMs, and roughly 2K beyond what I expect to use for the month in the bank (checking account). We have sufficient credit to do a fair bit if we needed it - enough that we could cash out investments by then if we had to (esp since one gets a month to pay off credit without paying a thing).
Savings accounts don’t earn enough to interest me. I’d rather invest in things that have more promise of growth, so we do. We win some and lose some, but mostly have won over the years.
I should note that our jobs are stable - hubby owns his own business and still gets headhunter calls if he should ever change his mind and I have a standing offer for a full time job anytime I want it. (I work part time now only opting for full time when I want it.) We have great health coverage from our health share and life insurance if anything horrid were to happen.
“anything that could be classified as an “investment” is likely to tank just as everyone is losing their jobs”
I have seen this happen several times. If you look up the graph of the S&P 500 from 1980 to now, it seems like we still pretty high on the curve and “down” is possible.
To me, 6 months spending plus a “major issue” seems about right, where “major issue” might be a new car, roof replacement, or something of the sort.
I’m mid-50s with two college graduates and one finishing his freshman year, @AboutTheSame . Cash will be tight for 6 more semesters. At 0.1% interest rates, we just feel there is no need for much in terms of available cash or liquid assets. If we have extra it goes into retirement to save on taxes. We have never made enough to max out 401k deposits forcing us to keep taxed assets.
Definitely comfortable with…Both DH and I have very stable jobs (I’ve been at mine for 30 years, he’s been at his for 21)…I don’t see either of losing our job (at this point we are figuring out when we can retire!), but if one of us did, I still think we’d be okay. If a disability hit, we are covered for that as well (and we have good medical insurance). And, if worse came to worse we could borrow against our home (which is paid off), dig into our investments or even our retirement. (Though I hope it wouldn’t come to any of that!)
The amount in my “emergency fund” (a savings account) is less than 6 months’ after-tax income and I have $140 in my checking account and $20 cash until payday, but I’m very frugal, so I’m not concerned. My goal right now is to transfer as much as I can from each paycheck into the savings account until I’ve reimbursed it for transferring funds from it for making my maximum yearly IRA contribution in April. I’ve already paid back the savings account for using some money from it to double up on my property taxes in 2017, to maximize my itemized deductions while I could. I also had out-of-the-ordinary expenses in the first four months of the year: euthanasia and cremation for previous dog, vet bills for the current dog, and a root canal and filling for me. So I actually feel like I’m doing pretty well now.
I try to keep 6 months in cash, and have other options (non-retirement investment with some money in a cash position) if I ever needed it — kept mostly to be able to invest quickly if an opportunity arises, but also could be used for emergency cash. My line of work (high billing rate, but gig economy) makes it essential to maintain my emergency fund.