Ok here my situation. I have 8-9 months expenses save in cash. Should I continue saving or start investing?

Question

Ok here my situation. I have 8-9 months expenses save in cash. Should I continue saving or start investing?

Answer 1

Most financial advisors would tell you in the past that 6 mo. of emergency funds is good. I am of the opinion that it should be more like 9-12. I base that on the current state of the economy and the fact that nobody is immune to a job loss right now. That said; I would put a little more away. You can invest in 3 more monthes! Good luck.

Answer 2

you only need to keep 3-6 months saved up in cash and call it your emergency fund.. if something happens then you can dip into that... you replace that fund once you take anything out of it.... no matter what anyone tells you... GET RID OF DEBT... if you are paying 10-12 percent to your credit cards or your car... pay them off now because your money wont make you 10-12 percent but it can definitely go the other way.

Cash makes the world go in the right direction for you. dont be affraid to have cash(savings account or money market account) its save and easy to get to in an emergency....

pay off debt then start investing once you can clear yourself from debt.... its a great feeling to start over debt free and be able to invest with 5 months of cash sitting there just incase something happens...

Answer 3

Keep your current 8-9 months of living expenses in a high yield bank account. I am guessing that you are familiar with the idea of an emergency fund. If not Google "emergency fund" and read about them. I would suggest that you pay down any debt you have (except a mortgage, they are long term anyway). After all debt (excluding mortgage) is gone I would recommend that you start investing.

Answer 4

Do both!  Stick your cash in a low-risk, liquid money market account at your local bank and earn some interest.  That way you can earn some interest and have your money available if you need it.

p.s. good job on being financially responsible!

Answer 5

Seriously? Sitting in cash? Well get it invested!  : ) Just because it is invested doesn't mean you can't access it. Put it all in a brokerage account somewhere and let it work for you. (Don't necessarily put it in an IRA because then it'll be expensive to touch)...but good lord...cash doesn't really earn you anything.  Investing is saving...that is what it is all about!

GOOD FOR YOU by the way...not many people can say that have that set aside!

Answer 6

See www.trendsresearch.com

Gold may hit $2000/ounce by the end of the year due to a severely falling dollar. Buy gold bullion coins or but gold ETF's and by 2009 you will have the same purchasing power you have now.

If you are conservative, buy Euro ETF's and you will lose less than by holding greenbacks.

Answer 7

There is real fear in our economy right now. I mean, a bank closed. For real. That's the worst. Those big mortgage lender companies bellying up. We're in trouble so if you invest, be careful. Big money can take risks, small money pays for their mistakes.