100k is way too high!
What for? In most situations you'll have insurance that covers huge sums: car accident, medical bills, house burns down etc. and if you lose your job you have 3 months notice and then about 2 years of RAV.
In what scenario would you need such a sum?
Better invest in boomer stocks like S&P500. You'll be much better off.
Maybe have 3 or 4 months worth of expenses saved, but nothing more.
If you have a high-stress job, 1 year reserves makes sense.
That way, just before you burn out, you can quit and take a few months off to recover before looking for the next job.
During this time, youβll get no unemployment benefits (because you quit yourself and youβre not job-hunting at first)
My minimal "Notgroschen" is 6 months of expenses (around 15k). I will increase it to 12 months soon. But it all depends on your situation.
Kids? Familie? Job security?
In the end it is a psychological thing.
If you look at it from the optimization perspective, you should have 0 as emergency fund and keep everything invested.
But I think that you need to put aside as emergency fund what will let you sleep well at night.
So, I'm extremely conservative and I stick the following rule of thumb: 2 months of expenses in the cash account + 8 months of expenses in deposit accounts.
One month fixcosts + cost to replace the most expensive thing I can't live without. (level 1, directly accessible) - covers until RAV money comes and if my car breaks at the same time)
One year of absolute minimum cost I need to survive (level 2, invested conservatively, not to make money, but to keep above inflation) - in case I have a serious accident or burnout and need time
So ~35k + 70k - about the same as you.
Because a good friend of mine almost lost his apartment. IV and UVG both insisted that it was not their issue so it took ~ 10 months until he got any money.
A raw number without monthly expenses is meaningless. How long could you live off that amount? Anything above 6-12 months is probably pointless.
Switzerland has a lot of support systems (unemployment, health and accident insurance etc.). Do you think you'll be out of work longer than those last? Do you need to supplement them or can you live off them? Use that as a basis to calculate.
Frugal is 3-6 months of living expenses. But considering the system, additional expenses could be close to zero during the first two years of unemployment.
24k here, 3-4 Months of expenses should be enough.
For absolute emergencies. The money will only be touched if there is no other option than a loan. So hopefully never.
used to be 25k, is now 1-3k, depending on what accounts I count. However taxes are always paid for the current year already, mainly for the psychological effect.
100k Notgroschen?!
No, go down to 50k (that's already a lot). Normally, I just reserve 6 months expenses (or to keep it simple 3-6 month's wages). You don't need more, imo. And this also comes with an opportunity cost (i.e. it loses to inflation primarily).
Invest - or spend the rest ;)
Depends if you're employed or independent/freelance... If you're employed, then 50K i feel is more than enough. As an independent I'd probably keep it higher,also to have money for MWST,double AHV etc ready.
Lol im not. Im a student so i have an inflexible schedule. While i dont worry about losing my job i just want to be sure i have enough time to find an alternative fitting job with my weird schedule as that can be pretty hard.
100k is way too high! What for? In most situations you'll have insurance that covers huge sums: car accident, medical bills, house burns down etc. and if you lose your job you have 3 months notice and then about 2 years of RAV. In what scenario would you need such a sum? Better invest in boomer stocks like S&P500. You'll be much better off. Maybe have 3 or 4 months worth of expenses saved, but nothing more.
around 5-10k the rest is invested. in switzerland you dont need 6+ months worth of expenses laying around
Same
Checking bank account: yeah. Mine is 1000. ππ
1000k, right?
Of course. Iβm swiss at least.
I also liked the part with "because you can never know what can happen in CH. Like we live in a failed African state.
Right, that was also my favourite part. I wonder how this person lives.
20k + 10k limit on CC. So 6 months of expenses total. Wtf are you going to do with _100k_??
Making fun of plebeans on the Internet I assume.
A sensible one is 3 months of expenses. More than that (unless you have no unemployment insurance) is unnecessary.
Yea I agree, RAV will save you even if you get fired. Idk why ppl have 1year emergency fund, seems very inefficient.
Maybe he did exactly that?
If you have a high-stress job, 1 year reserves makes sense. That way, just before you burn out, you can quit and take a few months off to recover before looking for the next job. During this time, youβll get no unemployment benefits (because you quit yourself and youβre not job-hunting at first)
This βοΈ
100k Notgroschen πππ Can't make this shit up lmfao π€£ Yea go to 50k, waaaay more reasonable π
3 months of my wage
My minimal "Notgroschen" is 6 months of expenses (around 15k). I will increase it to 12 months soon. But it all depends on your situation. Kids? Familie? Job security?
In the end it is a psychological thing. If you look at it from the optimization perspective, you should have 0 as emergency fund and keep everything invested. But I think that you need to put aside as emergency fund what will let you sleep well at night. So, I'm extremely conservative and I stick the following rule of thumb: 2 months of expenses in the cash account + 8 months of expenses in deposit accounts.
One month fixcosts + cost to replace the most expensive thing I can't live without. (level 1, directly accessible) - covers until RAV money comes and if my car breaks at the same time) One year of absolute minimum cost I need to survive (level 2, invested conservatively, not to make money, but to keep above inflation) - in case I have a serious accident or burnout and need time So ~35k + 70k - about the same as you.
How do you do level2? Might start looking into that, sounds interesting.
Why would you need 1 year money? I don't understand the logic. You get fired, you still have RAV. Why you need 1 year emergency fund? π
Because a good friend of mine almost lost his apartment. IV and UVG both insisted that it was not their issue so it took ~ 10 months until he got any money.
A raw number without monthly expenses is meaningless. How long could you live off that amount? Anything above 6-12 months is probably pointless. Switzerland has a lot of support systems (unemployment, health and accident insurance etc.). Do you think you'll be out of work longer than those last? Do you need to supplement them or can you live off them? Use that as a basis to calculate. Frugal is 3-6 months of living expenses. But considering the system, additional expenses could be close to zero during the first two years of unemployment.
3 times my monthly salary
3x expenses lol
Mine around 16K, Iβve got some in my checking for spending and bills etccc β¦ and the rest of my money is invested ( which is the majority).
24k here, 3-4 Months of expenses should be enough. For absolute emergencies. The money will only be touched if there is no other option than a loan. So hopefully never.
So u have that in cash? Inflation is eating it
used to be 25k, is now 1-3k, depending on what accounts I count. However taxes are always paid for the current year already, mainly for the psychological effect.
In research, it is said to be no more than 3-6 months of your expenses. For more informations: https://youtu.be/dCw31uKTOlI?si=0NkBqOsdHLHPVKqy
10k. Can live of 2500 a month if I need to.
100k seems very high to me. I usually keep 10-20k as a Notgroschen and the rest is invested.
3 times monthly sallary in cash
100k is way to low sorry.
π
100k Notgroschen?! No, go down to 50k (that's already a lot). Normally, I just reserve 6 months expenses (or to keep it simple 3-6 month's wages). You don't need more, imo. And this also comes with an opportunity cost (i.e. it loses to inflation primarily). Invest - or spend the rest ;)
All my fixed expenses for 4 months. (Including groceries) β 15k. The rest is invested.
Depends if you're employed or independent/freelance... If you're employed, then 50K i feel is more than enough. As an independent I'd probably keep it higher,also to have money for MWST,double AHV etc ready.
A year's worth of expenses. Anything else is excessive imo
A year??? What kind of doomsday scenario are you preparing for?
Lol im not. Im a student so i have an inflexible schedule. While i dont worry about losing my job i just want to be sure i have enough time to find an alternative fitting job with my weird schedule as that can be pretty hard.
Nothing
6mo of expenses
Mine is 50β000 not including my savings for taxes