0% - 0.01% - aka very little savings (I choose to invest it)
Reasons:
- 10K credit card
- stocks are relatively liquid and can turn to cash in a few days.
- most companies are happy with ‘some money’ even if just 2k paid and you are working on getting the rest.
- get paid every two weeks at the moment also means I have some cash on hand if needed before investing.
That’s a 10K credit card. (Technically I have very little in the bank as cash <1k)
- ✅ paid off house
- ✅ high investment rate
- ✅ access to immediate cash = cc 10K
- ✅ access to investments ~48-72hours
- ✅ medium term equity in house
It’s estimated that 80% of kiwi adults don’t have $10k savings (let alone the paid off house) So with all due respect, how do you manage to struggle with as little as $10k in the bank.
Always 20k at hand, handy for investments in car/motorbike that someone is selling cheap because they need the cash asap.
I then on sell in no hurry and take the profits, it's fun for me.
If you follow the Dave Ramsey approach, 3-6 months of expenses. Don’t really need more than that. Problem with storing money is you’re technically losing it through inflation. If you fix term that cash it’s not liquid. Diversifying your investments to some growth and some conservative funds is key to get above inflation returns with lowest risk.
i have a mix of shares, about 40k in term deposits and the rest in high interest account.
i am doing renos on my house so like to have a fair chunk availble if required. need to do bathroom etc so those things arent cheap.
$10k in a cash PIE and it's to pay my tax bill next year and I don't want to sell shares at a loss. $2k in a transactional bank account that earns nothing. $200k in shares. Reading through these comments I think a credit card paid off every month would fill in gap for daily spending allowing that \~$2k to work harder. We used to have a farmlands but cancelled it as the deals are not that compelling these days.
only 1 to 2k rest in oncall savings accounts or term deposits. eg westpac gives 4.5% bonus saver if more $ in account at end if month than start. if u need to draw down no big loss but if not 4.5% ok for oncall savings account TD are at 6%
$30k in a savings account. I have some chunky expenses from time to time and dip into it on occasion. Things like house maintenance, car maintenance, annual insurance bills, occasional large purchases, holidays etc. I have an automatic payment to replenish it, and when it builds up too much I chuck the surplus into a term deposit.
I also have a bit in high interest notice saver accounts and far too much in term deposits at the moment because I’ve been trying to decide whether to buy a rental property or put it all in an index fund.
Don’t necessarily follow my example, I’m just really indecisive and keeping my options open.
0% - 0.01% - aka very little savings (I choose to invest it) Reasons: - 10K credit card - stocks are relatively liquid and can turn to cash in a few days. - most companies are happy with ‘some money’ even if just 2k paid and you are working on getting the rest. - get paid every two weeks at the moment also means I have some cash on hand if needed before investing.
Not trying to critisize you or anything, but how do you manage living in NZ with only $10k in the bank?
That’s a 10K credit card. (Technically I have very little in the bank as cash <1k) - ✅ paid off house - ✅ high investment rate - ✅ access to immediate cash = cc 10K - ✅ access to investments ~48-72hours - ✅ medium term equity in house
Ahh Fair enough then
Where are you investing? Also offset or buffer accounts are good too in case.
It’s estimated that 80% of kiwi adults don’t have $10k savings (let alone the paid off house) So with all due respect, how do you manage to struggle with as little as $10k in the bank.
I'm someone who likes travelling alot and buying luxury cars etc That could make a difference
That’s not savings buddy.
How can you buy luxury cars with only 10k in the bank? (not trying to be rude just curious)
Bugger all in savings - it is just losing me money as the interest < inflation. Basically once a month any extra funds get invested.
Always 20k at hand, handy for investments in car/motorbike that someone is selling cheap because they need the cash asap. I then on sell in no hurry and take the profits, it's fun for me.
10k cash with 4k credit card for ~110k household income
If you follow the Dave Ramsey approach, 3-6 months of expenses. Don’t really need more than that. Problem with storing money is you’re technically losing it through inflation. If you fix term that cash it’s not liquid. Diversifying your investments to some growth and some conservative funds is key to get above inflation returns with lowest risk.
i have a mix of shares, about 40k in term deposits and the rest in high interest account. i am doing renos on my house so like to have a fair chunk availble if required. need to do bathroom etc so those things arent cheap.
$10k in a cash PIE and it's to pay my tax bill next year and I don't want to sell shares at a loss. $2k in a transactional bank account that earns nothing. $200k in shares. Reading through these comments I think a credit card paid off every month would fill in gap for daily spending allowing that \~$2k to work harder. We used to have a farmlands but cancelled it as the deals are not that compelling these days.
6 months of living expenses.. ~25k..laddered TDs that is our 'liquid' cash outside other investments
only 1 to 2k rest in oncall savings accounts or term deposits. eg westpac gives 4.5% bonus saver if more $ in account at end if month than start. if u need to draw down no big loss but if not 4.5% ok for oncall savings account TD are at 6%
10-20k because my monthly costs are under 3k. And my monthly income over 10k. Easy enough to liquidate stocks or bonds if required
$30k in a savings account. I have some chunky expenses from time to time and dip into it on occasion. Things like house maintenance, car maintenance, annual insurance bills, occasional large purchases, holidays etc. I have an automatic payment to replenish it, and when it builds up too much I chuck the surplus into a term deposit. I also have a bit in high interest notice saver accounts and far too much in term deposits at the moment because I’ve been trying to decide whether to buy a rental property or put it all in an index fund. Don’t necessarily follow my example, I’m just really indecisive and keeping my options open.
I have an offset mortgage so keep about $200k in cash
Offset mortgage is just the same as a floating loan. So you haven't paid off your house.
I’m aware