How much cash buffer do you have?

[moyjos]

"Alex P Keatons's" thread on her friend with. I cash buffer
http://somersoft.com/forums/showthread.php?t=96070#post1138727

Got me thinking...how much buffer do you have? (not $$$ --time)
Since I first started work at 15 my parents drummed it in to me the importance of a cash buffer. Back in those days it was firstly one weeks wages that "must never be touched unless absolutely desperate". This was money on top of the 10% savings that was also drummed into me
As expenses grew so the cash buffer. For the last 20 odd years we have had at least 3 months with preferably 6 months

How much do you have ???

 

[Richard Feynman]

This has been discussed here previously. Have a search if you're interested

Right now I have far more than I need to feel comfortable (I could survive well over a year unemployed) but I'll be dipping into this for my next purchase. Presently 2/3 is pure cash (offset), 1/3 is in redraw.

6 months is a very sensible buffer to maintain.

I'm comfortable for this to temporarily dip as low as 3 months following new purchases, provided my rate of rebuilding is quick enough e.g. I can stash away 1 months' living expenses every 2 months or something.

I have no dependents -- an important consideration.

 

[moyjos]

Oops
The search is here.. https://www.google.com.au/?q=site:somersoft.com+rixter#q=site:somersoft.com+cash+buffer

Mods.. Please feel free to delete this thread

 

[ozmale42]

Around 3 months salary in the bank plus the knowledge that if I lose my job I
will get around 3 months holiday pay. More if retrenched.

 

[Rixter]

At the moment, $100k.

 

[trey]

around 300k, that would last a few years in bali if i didnt get caught up partying to much !

 

[sash]

A couple of mil

 

[Alex P Keaton]

I would like to have at least $50,000 cash buffer but I should have around $80,000 after I sell my unit. The $80,000 will offset my $177,000 mortgage so it means less non deductible debt for me which is great!

Because I will have such a small ppor mortgage I'll be able to redirect part of my salary that I used to pay my mortgage with into my investments to either NG an ip or use the excess salary to save up for my next deposit. I'm after strong CG for my next IP, its really important to me so I'm thinking my best option is to buy 7-20 km from the Brisbane cbd get a 3 year fixed rate with slight NG.

I'm currently able to save $1000 per month and atm I have $17,000 in the bank after paying for my car & just trying to decide if I wait a few more months first so I can save a few more grand for my buffer or I invest now. Maybe when I hit $20,000 I'll buy. I'll start the proceedings anyhow.

 

[Peter_Tersteeg]

In the event that I can't work, I've got very good income protection that will allow me to continue very comfortably until age 65. I can easily cope until the waiting period is up.

 

[china]

A couple of mil

Thats not a cash buffer in the context of this thread. Should probably call it cash to splash around. Buy a few nice cars.

 

[D.T.]

Thats not a cash buffer in the context of this thread. Should probably call it cash to splash around. Buy a few nice cars.

How do u know?

 

[Heinz57]

...Enough.

 

[datto]

50 cents...................

 

[flightcrank]

This is a good topic because i needed to use my cash buffer in the last few months.

i have a $5,000 cash fund for emergancy house bills/repiars
and a $5,000 cash fund for auto bills. (i have not payed car insurance ever).

In addition to that i have $113,000 in a redraw portion of my ppor. Only to be used if times get really hard.

There was a restructure at work and i got the boot in terms of hours, only made $250 a week for 4 months. but my buffers saved me. i used about $3k form my auto fund to cover it. building that back up now. ive put myself in a position where i dont burn bridges and have a stable income again.

i didnt loose a wink of sleep through it all. Not only did i have back up cash buffers + credit buffers. i had a back up plan to put me back in an income producing position by being more flexible with my boss's.

hope thats advice helps you all. I know im well on my way.

 

[Ace in the Hole]

Our cash buffer fluctuates greatly.
For the past few years while doing developments it's been mostly in the range of 6-12 months just guessing rough.
However the last 6 months until just recently we were actually negative by over 300k by draining all offsets,business and personal accounts and then taking out a private loan.
We were pretty much just hanging on making repayments month after month, scraping together any available funds to pay the most urgent bills/interest first.
Just got to get this latest development refinanced now that it's complete and get a couple mil cash back, which would cover maybe 3-4 years of interest payments and living expenses if we lost all work and property income.

 

[devank]

One year of expenses. This would vary from one family to another.

 

[allsuccess]

My comfort level is 6 months cash in the bank. However, currently I have bit over 6 months.

 

[Nixba]

At the moment, I'm being quite aggressive when it comes to cash buffers and contingencies. I've got $5,000 put aside for each property (vacancies, maintenance/repairs). I'd rather put the excess savings into my offset account and save for future deposits. I live at home with my parents and both properties cover themselves including expenses.

There is a topic on here about this that Skater posted that is definitely worth a read...

N

 

[Ace in the Hole]

At the moment, I'm being quite aggressive when it comes to cash buffers and contingencies. I've got $5,000 put aside for each property (vacancies, maintenance/repairs). I'd rather put the excess savings into my offset account and save for future deposits. I live at home with my parents and both properties cover themselves including expenses.

There is a topic on here about this that Skater posted that is definitely worth a read...

N

Wouldn't you consider any funds in offset accounts as part of your cash buffer?
Shouldn't all your spare cash be parked in offsets?

 

[Nixba]

Wouldn't you consider any funds in offset accounts as part of your cash buffer?
Shouldn't all your spare cash be parked in offsets?

Of course it's a cash buffer - but psychologically I consider it as savings for the next deposit and would rather have reserves outside of that ($5,000 per property) as contingency.

All savings and buffers are in offset account.

N