Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

 Personal Financial Management V3, It's all about managing your $$$

views
     
peachmonkey
post May 5 2019, 04:04 PM

Getting Started
**
Junior Member
282 posts

Joined: Aug 2006
From: Kay-Kay


Hi all,

Wanted to get some advice and views with regards to setting up an Emergency Fund. I've done some calculations on my monthly expenses and have managed to save about 6 months of expenses aside.

My question is where should I put this fund? I have a few options:
1. ASB
2. M2U Savers (roughly about 2%)
3. FD
4. High Interest SA (OCBC Booster or UOB Stash)

I don't want to dump everything in ASB that's why I'm thinking of spreading out where I put the emergency fund. Any advise what would be the best option?

Also, should I slowly increase the fund to 12 months?
peachmonkey
post May 9 2019, 10:55 PM

Getting Started
**
Junior Member
282 posts

Joined: Aug 2006
From: Kay-Kay


QUOTE(ytan053 @ May 7 2019, 08:46 PM)
U r doing right so far. Continue to park it at ASB, as emergency fund is not for investment, so no point to diversify it. Just max the return with low risk investment which u r currently doing.  Better Still, max it to rm200k . With your bumi privilege, don't bother with m2u saver, fd, or high interest SA. These are for non bumi who doesn't have access to ASB. Even non bumi is recommended to use asnb fixed price fund as emergency fund and forget bout the rest like fd or saving account.

If u feel more secure with 12mths, then u may choose to increase it. Depends on the purpose. Some may want to start a business, so they prepare maybe 1 year, 3 years or even 5 years emergency fund. Or some foresee they may get fired and will take time to get another job. So it really depends on individual circumstances. General rule of thumb, 6 mths is the guidance and probably may be good enough if ur job is very stable.

Not to forget what about any big expenditure that u might need in the next few years, like down payment for new car / house / further education / house renovation etc. This should be set aside as well.
*
Hi!! Thanks for the advise. Really appreciate it smile.gif

peachmonkey
post May 12 2019, 12:28 PM

Getting Started
**
Junior Member
282 posts

Joined: Aug 2006
From: Kay-Kay


Do I need to differentiate between savings and investment?
Or can it be stored in the same account?

My current understanding is:
Investment : Long Terms with set target (e.g. 10 years with 8% return p.a)

Savings : Short Term (e.g. Vacation in 1 year)
peachmonkey
post Jun 24 2019, 11:10 PM

Getting Started
**
Junior Member
282 posts

Joined: Aug 2006
From: Kay-Kay


Hi all, I was wondering how long should I keep my investment other than ASB?

For example, if I'm currently saving into ASB and investing in mutual funds or ETF; how long should I keep investing? Say one day I max out on my ASB limit, than I can channel the extra cash into investment right?
But how long should I keep investing? Till I reach a certain amount (e.g. RM50k) or a certain return (e.g. 15% total return)?

I'm curious because when you save or invest you do plan to use the money either for fun/leisure or to purchase assets. If that's the case, than would your investment duration be determined by the target amount?

 

Change to:
| Lo-Fi Version
0.0903sec    0.54    7 queries    GZIP Disabled
Time is now: 8th December 2025 - 07:40 PM