50% of the USA cant come up with $2000 if they needed to

[Trouble Maker]

I would bet less than 3% have the correct liquid living expense money.

 

What do you consider the correct amount (in relation to either salary or living expenses)?

What exactly do you consider liquid?

 

I just got to my six months of living expenses relatively recently. I've been debating whether to leave that in savings or do something else with it that will make more money since savings accounts now a days make a few pennies a year. While I'm no financial expert, I can't think of anything off of the top of my head that would either be liquid enough and/or low enough risk that would also make very much more than it sitting in savings for me to feel comfortable with putting my buffer anywhere else. It kills me just having it sit there though, basically losing money over time since the measly rate is far lower than inflation. It's pretty much a fact that I will be laid off (again) at some point in my career in the field I'm in, at least until the boomer's start dying... since I'm convinced at this point that they won't retire and will work until they die.

[dakotart]

What do you consider the correct amount (in relation to either salary or living expenses)?

What exactly do you consider liquid?

 

I just got to my six months of living expenses relatively recently. I've been debating whether to leave that in savings or do something else with it that will make more money since savings accounts now a days make a few pennies a year. While I'm no financial expert, I can't think of anything off of the top of my head that would either be liquid enough and/or low enough risk that would also make very much more than it sitting in savings for me to feel comfortable with putting my buffer anywhere else. It kills me just having it sit there though, basically losing money over time since the measly rate is far lower than inflation. It's pretty much a fact that I will be laid off (again) at some point in my career in the field I'm in, at least until the boomer's start dying... since I'm convinced at this point that they won't retire and will work until they die.

 

I opened a money market account at my credit union (interest rate is better than a savings account but still horrible). You could also put in in short term CD's.

[Got-Boost?]

It's pathetic really that people don't have $2k to there name without moving/pawning/selling something to get it....

 

Aren't people sick of that crap and living that way? I remember when I was first on my own at 18-years old going through that and the feeling. I decided right then that I NEVER wanted to live that way EVER AGAIN...

 

 

What do you consider the correct amount (in relation to either salary or living expenses)?

What exactly do you consider liquid?

 

I just got to my six months of living expenses relatively recently. I've been debating whether to leave that in savings or do something else with it that will make more money since savings accounts now a days make a few pennies a year. While I'm no financial expert, I can't think of anything off of the top of my head that would either be liquid enough and/or low enough risk that would also make very much more than it sitting in savings for me to feel comfortable with putting my buffer anywhere else. It kills me just having it sit there though, basically losing money over time since the measly rate is far lower than inflation. It's pretty much a fact that I will be laid off (again) at some point in my career in the field I'm in, at least until the boomer's start dying... since I'm convinced at this point that they won't retire and will work until they die.

 

http://www.daveramsey.com/new/baby-steps/

 

I opened a money market account at my credit union (interest rate is better than a savings account but still horrible). You could also put in in short term CD's.

 

+1

 

Dave recommends that as well...

 

Use this money for emergencies only: incidents that would have a major impact on you and your family. Keep these savings in a money market account. Remember, this stash of money is not an investment; it is insurance you’re paying to yourself, a buffer between you and life.

http://www.daveramsey.com/new/baby-step-3/

[Furloaf]

I've been debating whether to leave that in savings or do something else with it that will make more money since savings accounts now a days make a few pennies a year.

 

A money market like mentioned, or a laddered CD system. Take 1/12 or 1/6 of your safety money and put it into a 12-month or 6-month CD. Repeat each month so that in the end you will have all of that safety net money in 12, 12-month or 6, 6-month CDs. This gives you a CD maturing each month which keeps it semi-liquid, and also you can simply allow the CD to renew if you do not need that extra money at that time.

[Bobby Lee]

I currently have a full year's salary sitting in savings. I remember living pay check to pay check when I was a 18, 19, and 20 years old. Never gonna live that way again.

[koolrayz]

A money market like mentioned, or a laddered CD system. Take 1/12 or 1/6 of your safety money and put it into a 12-month or 6-month CD. Repeat each month so that in the end you will have all of that safety net money in 12, 12-month or 6, 6-month CDs. This gives you a CD maturing each month which keeps it semi-liquid, and also you can simply allow the CD to renew if you do not need that extra money at that time.

 

I keep about a third of my cushion in an interest bearing checking account. This account is only used for the two house payments. I also direct deposit a portion of my paycheck into it that more than covers the payments so the account is always growing. The rest i have in three 6 month CD's that are spaced 2 months apart.