Hey /biz/, how much cash do you have on hand in case of emergencies? I feel like I'm pretty risk averse, so I have about $20k that I do nothing with but leave in a money market account.
Is this too small? Too big?
What are your opinions on this?
Also I saw an interview with Mark Cuban and he said he keeps all of his money in cash and only invests when he sees an opportunity to make money. This seems pretty damn stupid to me but he is a billionaire so what do I know.
So on another note, is Mark Cuban an idiot?
20k is to much invest 10k and Mark Cuban is a faggot born a couple steps from home plate
conventional wisdom is to keep 2 months living expenses in cash and invest the rest
>>1141327
Doesn't 2 months seem like not very long though? What if I have a medical emergency or something?
>>1141331
then you can sell your investments...
Your emergency fund consists of several things
The first part is a multiple of your monthly living expenses, such as 3/6/12/18/24 etc. It can be whatever multiple or amount you want it to be.
The second part is any emergency expenses you may have. This means that you have a separate account from the monthly living expenses. This accounts has the amount needed to cover things such as copays for insurance if you have to go to the doctor.
There are a ton of ways to set up an emergency fund, but this is how the cash emergency fund works.
The underlying idea is that you never want to liquidate investments during an emergency.
It's personal finance for a reason. Just asking us if 10k/20k is right is impossible for us to answer.
>>1141333
I see. Thanks for the input.
>>1141333
very well said.
>>1141340
Generally, if you have a very secure job and lots of experience, in a high demand field. 6 months expenses is about right.
If you're a beast with credit and can really tighten discretionary spending you could get away with 3 and a fund for highest insurance deductible.
The riskier your position the higher your multiple. The median job search right now is about 1 year.
If you're self employed or have irregular income you need to double the fund. 1 emergency Fund 1 Cashflow Buffer Fund and 1 deductible.
Should anyone of these funds be low all new investment stops until replenished.
When you have this buffer You can go balls deep with your investments and let Time really go to work.
FUCK NO. Way too much. I fell for this meme myself. Unless you're literally planning something big like moving to a new country, moving out of your parents house or something then you don't need more than a few thousand.
$15/20k could be earning you 8% right now. That's not too much but that's almost Two thousand a year. Easily pays for let's say, your gym membership, protein powder and maybe dildos for example. Whereas right now it's just losing money.
Don't listen to billionaires BTW. They're going to give shit advice, they don't care about helping poorfags
>>1141604
Are you Chinese?
I have $9,000 minimum in my savings account at any time.
On top of that, I have a HELOC for $100,000, and $22,000 in credit card lines.
If what Mark Cuban says is true, then yes, he's a very very lucky retard.
>>1141616
I should add that my monthly cost of living expenses are $1500~, so $9000 is 6 months of padding.
