How much cash buffer do you have?

[Coconutwheels]

I haven't always had a good buffer, but from the recent sale of my business I'll maintain enough to cover 2 years of negative cash flow based on my projected debt levels and an interest rate of 9%.

As time goes on technically I'll need less and less, as cash flow increases and debts decrease.

 

[hobo]

Very, very little at the moment. It's an uncomfortable feeling.

 

[Singo]

Very little at the moment. Almost zero.

But not feeling uncomfortable. Just three years ago we had no cash and no assets. Now at least we have assets which can be sold if any cashflow issues arise.

Just settled one IP yesterday. Time to build the cash buffer. Ideally should have around 50k.

 

[jackbak]

At the moment around 3 years of living expenses but happy to get that down to a years worth.

 

[Deltaberry]

Probably enough to last 15 years comfortably or 30 years on an average lifestyle.

 

[MIW]

It's good to know that most on this forum do not fall into the statistics where 20% (1 in 5) people would struggle to come up with $1000 to deal with emergencies and 1 in 3 spend ever cent they earn! Well done!

 

[D.T.]

It's good to know that most on this forum do not fall into the statistics where 20% (1 in 5) people would struggle to come up with $1000 to deal with emergencies and 1 in 3 spend ever cent they earn! Well done!

Should be fairly obvious. Why would visitors enthuse in getting better financially if they weren't financially competent?

 

[MIW]

Should be fairly obvious. Why would visitors enthuse in getting better financially if they weren't financially competent?

I suppose because some people just wish to brag or boast? Or, a novice may not be so financially competent, I know it took a bit of knowledge and education on my part (especially figuring out fact from opinion/fiction).

 

[sash]

Horses for courses...also depends on the size of the portfolio and level of debt.

I like to ride out any bumps...having cash allows you to think through things and make silly decisions which may lead to loses.

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

 

[skater]

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

N

Wow! I'm impressed! Not because its one of my old threads, but because that was sooooooo long ago now. You've obviously dug through the archives, reading through some of the old stuff, and there's a lot of good information in there from many contributors.

Not a lot of newbies do that. You will learn heaps by digging around in the archives.

 

[Nixba]

Wow! I'm impressed! Not because its one of my old threads, but because that was sooooooo long ago now. You've obviously dug through the archives, reading through some of the old stuff, and there's a lot of good information in there from many contributors.

Not a lot of newbies do that. You will learn heaps by digging around in the archives.

Skater - it was one of the first threads I read when I first gained an interest in property investment. The thread really opened my eyes to the importance of managing contingencies and keeping some reserves for a rainy day.

For those that haven't seen the thread, here is the link:
http://somersoft.com/forums/showthread.php?t=23497

Thanks,
Nixba.

 

[rugrat]

Our buffer fluctuates greatly. Sometimes we do have nothing left in there at all, and sometimes we have a lot. But even if we don't have any savings, we usually have some kind a of access to cash in an emergency (whether its through LOC, ability to obtain credit or even family if absolute need be). And we are lucky that hubby has good job security and a decent wage too. When our buffer is low (or non existent) it is always only temporary and it is just a matter of a couple of weeks before we have 'something' put aside again. We always have plan a, b, can, d, e and f up our sleeve.

 

[Rixter]

We always have plan a, b, can, d, e and f up our sleeve.

I like your style.

Just watch out if/when you get to plan Z....I hear things really go pear shape if it fails!

 

[MIW]

I like your style.

Just watch out if/when you get to plan Z....I hear things really go pear shape if it fails!

Ha, ha, this is so funny, perhaps after Z, we could start with numbers, 1, 2 ,3 this would then be unlimited, right?

 

[macca446]

Hi,
Over the years have always made sure we would be comfortable if something happened as we have only been on low tp med incomes combined and lucky we did,got injured at work required surgery and have not worked for nearly 2 years now and in this time have managed reasonably with my partner going back full time.
Bought 2 more properties in this time thanks to good rent return and capital growth now I have to paint inside and out of one in sydney,paint another interior at Orange,finish painting in another ,2 hot water systems,retaining wall,1 bathroom renovation and lots of little crap but still very positive about things looking for a job that best suits my injury at the moment ,going to go tafe do cert1V WHS couple of months so I can say having a buffer is so important you never know what is around the corner.
Macca446

 

[skater]

I like your style.

Just watch out if/when you get to plan Z....I hear things really go pear shape if it fails!

Ha, ha, this is so funny, perhaps after Z, we could start with numbers, 1, 2 ,3 this would then be unlimited, right?

No......Fruit, just for Rixter

Pear
Apple
Orange
Lemon
etc....

 

[Rixter]

No......Fruit, just for Rixter

Pear
Apple
Orange
Lemon
etc....

Not too much fruit Skater. I dont want to fade away to a block of flats!

 

[skater]

I dont want to fade away to a block of flats!

Nothing wrong with blocks of flats.

 

[Rixter]

Nothing wrong with blocks of flats.

As long as the foundations remain solid!

 

[skater]

As long as the foundations remain solid!

And the tenants pay the rent.