benaj
Member of DD Central
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Post by benaj on Apr 1, 2020 10:50:09 GMT
From £ to £££££££
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Post by rollercoaster on Apr 1, 2020 13:00:01 GMT
Bit extreme in my view: "12–24 months salary equivalent in cash as an emergency fund that will be there no matter what happens at home or at work."
But depends on your view of cash I suppose.
I have 3 months available in a cash ISA, instant access. More in premium bonds (nearly instant access these days - pretty close to cash), things in other savings products and investments with longer withdrawal periods, but the cash and PB cover the gap needed for the withdrawal notice. The hard bit is knowing how bad things are to decide to give notice of withdrawal of the longer term stuff!
P2P - that was a game. So agree with you there!
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hazellend
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Post by hazellend on Apr 1, 2020 15:25:02 GMT
To buy equities during this market correction I liquidated my full premium bonds and all the P2P loans I could and my emergency fund (6 months).
Now I just have the remaining P2P, credit cards (won’t go that far) and my boring monthly income to invest
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macq
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Post by macq on Apr 1, 2020 16:46:36 GMT
would never underestimate the sense of well being cash can bring in bad times (and have always thought the 3 months touted by many in the media as to short) but many people still worry that the money is not doing anything in good times. While the current events were unseen and not normal in the way its hitting with shut downs etc i have seen family members struck down with long term illness (and also my own household) and who never worked again and others retire early to look after them.At that point they did not think a cash buffer was boring and it gave me a new outlook
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Stonk
Stonking
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Post by Stonk on Apr 2, 2020 19:49:57 GMT
I never understand why people say to retain "X months' of salary" as liquid cash. It should be "Y months' of expenditure".
For people spending almost every penny they earn it might be about the same, but it certainly is not for everyone. My salary and my expediture have never been linked, and I'd recommend this policy to everyone.
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