Emergency fund help / tips
Hi everyone!
I’m hoping to get some tips on my emergency fund set up.
I currently have two “emergency accounts”. One is a 24 hour notice account (5%), because most emergencies ito medical / car can be paid the next day, or I can pay by credit card immediately and then just put the money back into my credit card the next day. This account I keep at R20,000 ($1,200), as I felt that if any emergency cost more than that my insurances would kick in.
My second account I call my “job loss” account. I work in an AI start-up, which is currently doing well but you never know, so I deem this account super necessary. This account is a 32-day savings account (6.95%). My first goal is to get this to 6 months of my fixed expenses (R126,000 ~ $7,700), and then to 6 months living expenses including groceries etc. Currently, this is only at R40,000 - I will be contributing R5,000 pm.
My worry is that this is too much cash just lying around in my bank account, where some of it could be put towards wealth building through investing.
If anyone could either confirm I’m on the right path, or if I’m being overly conservative - please let me know!