1Yr
The recommendations given online are only rough guidelines. They always include information depending on the individual life situation.
And indeed, if you have a high income, it is probably much easier to pay for a washing machine or fridge out of your current salary than someone with a lower income.
I'm still at the very beginning, despite the fact that I'll soon have been investing in the market for two years. My salary still isn't enough for me to spontaneously spend €500 to €700 on a broken washing machine or fridge and maintain my savings rate at the same time.
Or if the dog has to go to the vet and you have to pay in advance until you get the money back from the animal health insurance.
That's why both the dog has a (digital TG) savings stocking, which should have around 6k in it at some point in the best case scenario, and my nest egg is set at 10k (in an overnight money account), but is still far from full.
Even if you lose your job, you sometimes have to bridge several months until you get money from the authorities. Which is all the more difficult the lower your current income is.
My personal conclusion is: yes, a nest egg is definitely important. Especially if you have a lower income and don't have a huge deposit.
But you have to work out for yourself how much money you need to bridge x months.
But yes. If at some point my portfolio were to pay out monthly dividends equivalent to my salary, I would also reduce my nest egg considerably.
And indeed, if you have a high income, it is probably much easier to pay for a washing machine or fridge out of your current salary than someone with a lower income.
I'm still at the very beginning, despite the fact that I'll soon have been investing in the market for two years. My salary still isn't enough for me to spontaneously spend €500 to €700 on a broken washing machine or fridge and maintain my savings rate at the same time.
Or if the dog has to go to the vet and you have to pay in advance until you get the money back from the animal health insurance.
That's why both the dog has a (digital TG) savings stocking, which should have around 6k in it at some point in the best case scenario, and my nest egg is set at 10k (in an overnight money account), but is still far from full.
Even if you lose your job, you sometimes have to bridge several months until you get money from the authorities. Which is all the more difficult the lower your current income is.
My personal conclusion is: yes, a nest egg is definitely important. Especially if you have a lower income and don't have a huge deposit.
But you have to work out for yourself how much money you need to bridge x months.
But yes. If at some point my portfolio were to pay out monthly dividends equivalent to my salary, I would also reduce my nest egg considerably.
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@Metis My article was not about you having to cover emergencies from your current income.
If you know how much your nest egg should be and you haven't reached it yet but you're already investing, that's either a mistake or you've set your nest egg too high.
If you lose your job, notice periods must be observed. You won't simply lose your salary overnight.
But yes, you shouldn't underestimate the psychological component. If you feel more comfortable with a nest egg in your call money account, that's also worth something
If you know how much your nest egg should be and you haven't reached it yet but you're already investing, that's either a mistake or you've set your nest egg too high.
If you lose your job, notice periods must be observed. You won't simply lose your salary overnight.
But yes, you shouldn't underestimate the psychological component. If you feel more comfortable with a nest egg in your call money account, that's also worth something
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1Yr
@DonkeyInvestor I save my nest egg, dog nest egg and custody account in parallel. I'm nowhere near 10k in the custody account either.
I feel much less comfortable doing this one after the other. I tried that first. But all 3 things are far too important for that. And if only to train myself psychologically to put this amount of money away, even if I have to split it between 3 goals.
And of course, notice periods have to be observed. But here's an experience from my friend: 1 month's notice in the restaurant business and she was then unemployed for 2 months until she got the next job. Another month until she received her first salary from the new job. During this time, the employment office hadn't even given any initial feedback on her application for Citizen's Allowance/Alg.
Without her own reserves, she would not have been able to pay rent or anything else. Which would also have affected her 10-year-old son. If she had been unemployed for longer, it would have been even more difficult.
State support is good. But the bureaucratic mills grind very, very slowly.
I feel much less comfortable doing this one after the other. I tried that first. But all 3 things are far too important for that. And if only to train myself psychologically to put this amount of money away, even if I have to split it between 3 goals.
And of course, notice periods have to be observed. But here's an experience from my friend: 1 month's notice in the restaurant business and she was then unemployed for 2 months until she got the next job. Another month until she received her first salary from the new job. During this time, the employment office hadn't even given any initial feedback on her application for Citizen's Allowance/Alg.
Without her own reserves, she would not have been able to pay rent or anything else. Which would also have affected her 10-year-old son. If she had been unemployed for longer, it would have been even more difficult.
State support is good. But the bureaucratic mills grind very, very slowly.
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@Metis my wife and I recently wanted a freezer (our compartment in KS is a joke). I'm a big Liebherr fan. A quick search revealed that the appliances in our desired size cost €700-1,500. On the one hand, we can easily afford that. On the other hand, the additional price compared to cheaper brands is considerable: ~100% surcharge. I don't see the point anywhere.
In the end, we looked for two weeks and then our dream machine was sold in the classifieds. 6 years old, 75€ VB.
So we went. Okay, the box isn't super clean, the top drawer has a slight crack. Nevertheless: very good deal. I put the 75 on the table (I thought it was a fair price and didn't bargain any more) and took it home. It took the two of us about an hour to get the box up to scratch. And saved about 600€. That's €300 per hour compared to buying a new one. That way you can also reduce your nest egg.
In the end, we looked for two weeks and then our dream machine was sold in the classifieds. 6 years old, 75€ VB.
So we went. Okay, the box isn't super clean, the top drawer has a slight crack. Nevertheless: very good deal. I put the 75 on the table (I thought it was a fair price and didn't bargain any more) and took it home. It took the two of us about an hour to get the box up to scratch. And saved about 600€. That's €300 per hour compared to buying a new one. That way you can also reduce your nest egg.
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1Yr
@KevinE If you have the option of transporting such large devices, that's great. 😊
My girlfriend is also a second-hand fox when it comes to almost everything that can be transported by public transport.
My girlfriend is also a second-hand fox when it comes to almost everything that can be transported by public transport.
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