Emergency cash reserves?

[HavocXphere]

Somewhat linked to the salary thread ( http://mybroadband.co.za/vb/showthread.php/440073-Salary-how-much-is-good )...

How much money do you keep for emergency purposes to feel secure?

Preferably specified in how many minutes/days/months/years it would last you assuming no more salary. (Rand amounts would be meaningless since its lifestyle dependent).

Only counting money/investments you can spend on <24hrs notice without paying heavy penalties, so no fixed deposits, stamp collections etc. No counting overdrafts or credit facilities either.

 

[Carol35]

Absolutely nothing currently. We purchased a house with not a cent saved, was kind of spur of the moment and we used and exhausted every single financial avenue available to us. It will be short term but if my husband lost his job tomorrow, we would be very far up ****e creek. But what's life when you don't take chances and we needed to do this for the long term benefits.

 

[DominionZA]

I have about 1.5 months savings. Putting in extra hours now to earn more to get it up to 6 months.

 

[Messugga]

Tend to have 2 months of salary in liquid assets across a couple of accounts. If I lost my job tomorrow, that would last me a year fairly easily as I have very little actual expenses that I'm committed to, currently.

 

[Stefanmuller]

About 2 to 3. Weeks that is lol. And it will be credit card reserves.

 

[blunomore]

Oh gosh! We had saved up about enough reserves to last us 2 x months ... and then we had to use it as deposit on our new house, so now we are down to a small reserve and building it up again. It takes a looong time!

 

[heartbroken]

Bought a house a while ago, so the current reserves, not touching investments, shares or unit trusts, will last maybe 3 months, taking into account I need to pay the bond. But I prefer to keep close to 6 months in reserve, 'cause you never know

 

[HavocXphere]

Shot guys. Some interesting answers there.

Tend to have 2 months of salary in liquid assets across a couple of accounts. If I lost my job tomorrow, that would last me a year fairly easily as I have very little actual expenses that I'm committed to, currently.

You can stretch 2 months of salaries to a year? Respect.

I'm currently at ~4 months, but thats largely attributable to unusual circumstances so it'll drop to ~2 which is what I'd consider as safe for me.

 

[Paul_S]

I currently have very little cash reserves (not enough to cover a single month's bond repayment) so if things went pear shaped I'd be in trouble.

However I don't plan to build up a cash reserve until the house is paid off as it makes no sense to put cash into a savings account while the bond is eating up 9% per annum.
I treat my access bond as a savings account and will save about 0.4 million in interest in the process.

 

[biometrics]

Ziltch

 

[noxibox]

I'd say nine months. Could probably stretch that to twelve if I cut back on spending.

 

[mcryan]

Currently about 2-3 months, without digging into the credit cards. Will be more comfortable when i reach 6 months.

 

[fdaniels]

It is not really worth having liquid cash reserve. That money is just making the bank money. Rather just have your credit for that purpose. Ignore the temptation to use it and just store your card in your vault. Set your credit limit to a few times your monthly income and you are golden.

That way you can invest your other money (that you would have had as reserves). Push comes to shove you can use your credit card if you really run into an emergency and find a way to make your investment liquid.

 

[ld13]

I'm still a semi student, so I can stretch out my " " "savings" " " combined with a last salary payment (when I do get one ... story for another time) over about 6 months with interwebs to 12+ months without interwebs if the need do arise.

But each one in our family has their own money market account with quite a few bokke in them purely for extreme 911² cases. Thinking about moving most of them over to a stock standard capitec account and leaving like R9999 liquid and spreading the rest over various fixed deposits with them.

@fdaniels
I like this. Never thought about it like that. One has 55 days interest free with most credit cards anyways. Does hospitals take cards?
Our current emergency stash/plan is in any case also somewhat limited to where we can use our debit cards.

 

[Messugga]

Shot guys. Some interesting answers there.


You can stretch 2 months of salaries to a year? Respect.

I'm currently at ~4 months, but thats largely attributable to unusual circumstances so it'll drop to ~2 which is what I'd consider as safe for me.

Yup, we're very well ahead in paying the bond, cars were bought cash and we live very well within our means (no dstv and the like).

 

[ponder]

I reckon 6 months reserve on you salary and then 30 days on short term savings.

 

[Hamster]

Well, considering that you pay UIF and that I am in the fortunate position where job opportunities are being offered on a weekly basis, I reckon 2 months is enough. But i keep about 4 months salary spare atm which i can access immediately.

 

[HavocXphere]

Isn't UIF capped to something ridiculously low though?

 

[AirWolf]

Isn't UIF capped to something ridiculously low though?

Salary of R12478 pm.

 

[DJ...]

Interesting thread. I am in the process of moving to Singapore (at Dubai airport right now) and had to calculate this the other day. I had about 6 months' earnings in liquid assets and 11 in illiquid assets. Singapore will change that very quickly...