Emergency cash reserves?

[HavocXphere]

Salary of R12478 pm.

Thats actually not bad. Also rapid response!

I am in the process of moving to Singapore

Adventure ftw.

Interesting thread.

 

[AirWolf]

Thats actually not bad. Also rapid response!


Adventure ftw.

That's the salary you pay UIF up to. But you'll only get 40% of that if you claim.

 

[Voicy]

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...

I was in Singapore in April. GORGEOUS place! I would NOT mind moving there...but be warned it is fsckoff hot and 96% humidity will slap you in the face. Chengi airport is absolutely stunning though ... and the first view you get of the grand marine sands hotel will take your breath away.

I love how clean the place is, the no gum-rule, the 5% unemployment & 94% property ownership...not to mention every single street vendor is registered with the city, no dodgy hawkers. So when you buy something from them you know it's regulated/approved/inspected. Orchird street has also been crowned the shopping capital of the world recently.

How did you manage to get a job there? It's a MASSIVE banking industry...I wouldn't mind getting into their engineering sector though. Some impressive building going on in that little island.

 

[fastesthamster]

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.

Access bond has 1 years worth of savings.
Trading account has another years worth of savings (stocks can be converted to cash in <24hrs, only "penalty" is the cost of the trade).

 

[creeper]

Currently building up to 6 months again. I've paid off lots of my debt, so I'm currently putting away 50% of my net salary.

 

[Dolby]

It'll take me 6 months to get to R0.00 ... then a further 24 months to build a reserve

 

[noxibox]

Home loan is a good place to keep your reserve cash. You'll struggle to get a similar interest rate on savings.

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.

Not sure how easily you'd get a credit limit a few times your monthly income and that limit can get treated like an existing outstanding loan when you want to apply for something like a home loan.

 

[HavocXphere]

Yeah the access bond thing is a good plan. Can and does save lots of people in a crisis.

Not sure how easily you'd get a credit limit a few times your monthly income and that limit can

I doubt its difficult. I got 1.5x salary with zilch credit history or collateral. And thats just what the bank volunteered - I'm sure if one were to ask for a specific amount they'd be happy to oblige...more profit for them.

 

[koeksGHT]

Saved money? Whats that? haha

I need a savings but it is difficult.

 

[Sly21C]

I have a month's worth of cash reserves. If I cash out my Online Trading Account then my cash reserves will jump to 7 months' worth. If I include my credit card then my cash reserves will jump to 8.5 months' worth (maybe increasing my credit card limit won't be a bad idea). Currently saving about 45% of my net salary, this after settling my car debt using just over half of all my savings. Currently living dangerously with no medical aid and no comprehensive car insurance, just a third party, fire and theft.

 

[noxibox]

I doubt its difficult. I got 1.5x salary with zilch credit history or collateral. And thats just what the bank volunteered - I'm sure if one were to ask for a specific amount they'd be happy to oblige...more profit for them.

What they volunteered is probably what they're willing to offer. But how keen would they be to give you 4-6 months salary as credit? In addition the banks have to consider the National Credit Act, so they can't hand out massive credit facilities just to make more money. Now before that you could go to five banks, get twice your income as a limit at each, then take out a home loan based on 30% of your income and perhaps throw in a few fat personal loans. They also used to increase your limit periodically if you paid regularly. In the UK, without a similar law, we had a limit five times our monthly income, and it just kept going up because we always paid on time.

 

[DominionZA]

This is an excellent thread. I have picked up a few tips from posters. Thanks!

 

[Sly21C]

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.

Very good advice.

 

[HavocXphere]

===========
Thread revive
===========

Seeing how economic conditions have shifted in recent times I figured this thread could do with a revive. Has your position changed?

Up? Down? Sideways?

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.

 

[Paul_S]

I started investing this year and so far I've put away enough to cover me for two months.
So by the end of next year I should have enough to tide me over for 10 months.
Not easy but I'd rather feel the pain now than later.

 

[moklet]

Depending how the SO spends

 

[3WA]

Two month's salary, would last me about four to five months if used for expenses. Left in a ****ty money market account that yields less than inflation. Anyone with a better idea about where to dump cash that must be available immediately?

 

[Grant]

i mentioned here before, that i had a bit of a problem changing the old R200 notes for new ones at the reserve bank.

i had about R40k

the point of keeping the cash, is when i drop dead, there is still cash available for whoever it may be, to deal with things while my bank accounts are frozen until the executor of my estate completes his job

if you have a wife & kids, consider it an obligation to have cash available for your family if you suddenly drop dead.
1st thing that happens are bank accounts being locked down - that does not help your wife trying to continue supporting your family while the estate is being wound up.

 

[Grant]

Two month's salary, would last me about four to five months if used for expenses. Left in a ****ty money market account that yields less than inflation. Anyone with a better idea about where to dump cash that must be available immediately?

There is a company in ct called reserve holdings.
it's a private safety deposit facility, but not related to or associated with banking / finance, and therefore not subjected to those laws.

 

[Ho3n3r]

Nothing, at the moment we have to get credit some months just for food.

I know some people have it much worse out there, though.