What is the general feel of a financial buffer

[allsuccess]

Even thought this is a very personal subject depending on the risk profile, I would like to see what people think about the financial buffer.
Mainly in the case of job loss that supports you and your IPs

My comfort level is cash in the bank to last 6 months.

 

[moyjos]

Mine too is 6months preferred, but not less than 3 months.

 

[HotRod]

Zero for me.

 

[nhg]

A year.

I'm living off it now (not including equity from rising house prices).

And you realize it doesn't have to come from saving every penny.

 

[monalisa]

And you realize it doesn't have to come from saving every penny.

Do you mean equity?

 

[ZachAnSel]

3 months if you don't have family
6 months if you have wife/husband
12 months if you have wife/husband + child
24 months if you have wife/husband + child (more than one) + you have to look after mum/dad/relative

that's for me..

 

[nhg]

Do you mean equity?

Basically any pool of money you have lying around, equity, rental income, loans.

Also this relates to another thread from a while back. Simply knowing where to go and borrow say $2k in case of an emergency. A few of my mates now keep a small pool of cash and credit with us and have lent it to each other when needed.

I know this network has helped me out when I first started. So many costs I hadn't accounted for.

 

[VYBerlinaV8]

I've got about 8 months worth, andf I like having it there. It sits offsetting our PPOr loan anyway.

 

[Richard Feynman]

I'm single (staying that way). Got:

- 3 months in cash (including living expenses) PLUS
- 9 months of extra PPOR mortgage repayments so I'm covered if I stop paying that for 3/4 of a year.

 

[chilliblue]

Minimum 12 months for us

2 adults and 2 children

 

[virgo]

Financial Buffer

Hiya

Am i allowed to say my Financial Buffer is my mum?

 

[allsuccess]

Zero for me.

I'll get there

 

[mitchellp]

im 23
single
1 ip
just over 1000 in my account aha

 

[devank]

Do you mean equity?

Unless the equity is already in the form of cash (offset) then it can be used as buffer. Otherwise how would a bank lend you more money when you don't have a job?!?

 

[EN710]

I'm risk averse, so minimum 12 months income for me - can last for up to 20 months. My partner is more lenient at 6 months salary
Double income no kids here.

 

[EN710]

Unless the equity is already in the form of cash (offset) then it can be used as buffer. Otherwise how would a bank lend you more money when you don't have a job?!?

Existing credit card? Apply and get it before you lose your job...

 

[devank]

We have 3 kids + 2 grandparents. We maintain 12 months buffer. I'm slowly increasing buffer with shares.

 

[Deltaberry]

Passive income at least 75% of active income

Around 3 years of income in the form of disposable cash.

 

[Brady]

I like to have 6 months, but this month have a few things coming up.

- engine rebuild for my car $12k
- pay for holiday to Thailand $5k

So will be few months till get my tax back and bonus comes through to replenish the funds.

I'm single (well long term gf who doesn't live with me) and still living at home only debt is 3 IP's years worth of interest is ~~$36k

 

[MTR]

Hiya

Am i allowed to say my Financial Buffer is my mum?

hehe.... I really like that one