I've recently fixed in my home loan for two years so my offset accounts aren't useful and all other spare cash is currently invested in the share market.
For those of you who keep emergency funds that can be accessed immediately, where do you keep them, aside from a mortgage offset or the share market?
Yeah thanks I know the right word but wrote that in a rush. Though you never know, maybe he was trying to find a fishing budy to phish? ;-)
Yesterday I wrote "included" instead of "inclined" on another OzB comment.
What can I say? Morning shift, and I'm not a morning person. My mistakes are on display for eternity here. :)
Have a refreshing cup of coffee mate! sure that would help a bit :)
@polarq: I don't do coffee but energy drink and hot chocolate work. They only go so far though. And I limit myself to one a day.
@chriskq: Oh you think coffee and tea are better do you?
Not any of your business really but not every day. Just when I need the kick. It's not the energy drink that messes up my teeth, it's the coke no sugar.
Do you really go on the Internet and scold random strangers for their addictions? I'd say you're an even better client for the dentist. (Not me that you have to worry about though).
I hand it over to me neighbour. He runs a car wash.
Is he bald and wears glasses
Say my name!
Michelle!
My mistress
Why did you fix all of your home loan. Me personally ensure that my loan is spilt either in 2 or multiple loans (if I am fixing over different periods) and have some variable (usually around $20K) and use the full offset account as the place to store excess cash.
Fixing is a personal choice, based on personal circumstances.
All spare funds, excluding emergency cash is invested in the share market, usually providing a better return than an mortgage offset. Mrs is in the middle of two blocks of mat leave (making it difficult, but not impossible to refinance), we have two properties that are now on much lower rates as a result of the fix, saving us a fair bit in interest. Also, we're very happy with our lender and have no plans to change the loan at all or sell the properties.
Fixing is better only when interest rates are expected to rise. This will not happen atleast for 3 years as RBA has indicated.
Not necessarily.
At present, there is a steep discount to most fixed rates, compared to most variable rates. If rates stay the same you may well come to the end of your fixed term having saved on interest.
Like I mentioned, fixing your loan is a very personal choice. If my circumstances were different I would refinance for a better variable rate and maybe a cashback offer too, but at present my best option was fixing my loan
In the washing machine
That’s not how money laundering work
It does if they are fresh bills from the bank - wash and dry.
Yes I have watched Ozarks.
My friend told me only the poor planned for emergency funds. is it true?
Only poor people have emergencies
Rich people have 'life experiences' and have someone else to sort out the accounts
Pumpkin futures. They’ve been going up the whole month of October.
the front door key is under the front mat and cash is beside the car keys
Offset account.
Nice try ATO. You're getting desperate aye.
Did you consider splitting your loan to have a variable portion that you could have an offset with? That way you could have access to your cash and essentially have it sitting at a much higher interest rate than a savings account. They usually come with a fee though, but if your savings is big enough it might mean you end up better off.
Prefer to have the bulk of available funds invested in shares, collecting dividends and hopefully capital gains over the long term
In the case of an actual emergency then, when you need the cash fast, how quickly can you access those funds in shares?
Bricks of cocaine in the wall and guns burried in the backyard
But investments are a bad idea!
Half in electronic cash in a high interest savings account
(that gets a regular automatic transfer of at least a dollar to keep it open)
Half in physical cash in a bolted down safe
Start asap with whatever you can
Try to get to 3 months of income over time
Half is how much ?
3 months of income or expenses ?
Try to get to 3 months in both electronic and cash
3 months of expenses is good, 3 months of income is better (assuming you live within your means)
Bank
I have about 20k worth in V-Bucks. If the need comes, I'll sell my fortnite account.
Mortgage redraw.
Nice try, neighbour
Cash is kept in the gun safe with the shotgun, along with the body of the last guy who tried to take the cash
That stinks
Buried in my backyard as I don't trust the banks (or the government).
Did someone say KFC?
I don't care !
I love it!
I keep a couple of hundred bit coins on a few old usb drives on my desk here….
If this were true, you’d have millions of dollars worth of of nothing
Have kept my spare cash in a variety of places, specifically in the heating vent, vacuum cleaner, crawl space under the house, rented storage unit, and finally in barrels buried in the desert…
Better idea would've been to split your home loan and keep an offset for the variable portion.
3 levels of emergency funds, $2k-5k in cash in a safe. 30k-50k in bank. Rest in Sharemarket.
In an email sent to me by a nice nigerian prince who only wants $500 for a transfer fee
In my wife’s mercy.
I split my loan into both variable and fixed (mostly fixed) so my emergency funds is still sitting in my offset account.
In the freezer
Don't tell chopper or he''ll pay you a visit
In order of priority
1) Sort out an emergency fund, if you don't have one, that can help you stay afloat for a few months if you loose your job or other major expense
2) invest the rest in low cost simple investments according to your risk profile, many aussie finance blogs covering these.
as examples for the two above
1) you could just have the emergency fund in a High interest savings account (yes, it's below inflation, but instant access) or purchase bonds through an index fund such as vanguard, for better returns at the expense of instant withdrawal (although you can usually get it same to next day, in most cases)
2) VGS/VAS is a common combo for investment with a decent return, and lower overall risk than idividual shares, just make sure you do your homework of the pros and cons.
My job is pretty loose.
Gave all mine to nice man from ATO after they called to tell me there’s an arrest warrant out for me
Good to see I'm not the only one who read share market and thought how that doesn't compute with emergency cash.
That's like "securing your financial future" by buying blindly buying property with big loans.
I consider even the "2 business days" to get the money out of my mortgage to be too slow as emergency funds.
In a waterproof bag floating inside my toilet cistern.
in the banana stand.
There's always money in the banana stand.
My step sister helps me to keep my emergency fund.
In the wife's undies. They're like a fortress.
you just need a bigger battering ram…..
I can't even get it near the front door these days!
Inside a 68cm CRT TV.
Can fit about 2.1 million in there.
I guess you need to define what you need as an emergency and how quick you need access to it.
Most fixed home loans have an amount you can go over before triggering a break cost. Some are 30k others as low as 10 you can store some funds there.
Then I have my everyday account I usually have 500 dollars in it which rarely gets used these days. With credit cards etc I don't find the need for having extensive emergency funds as they can cover any emergency immediately and I can move money from slower means to cover for it. Just make sure you pay it off every month, other shares not as quick.
Last I have some shares with several places. Spaceship is probably the easiest for emergency funds. However I can move money in and out of that really quickly.
Offset account.
Luxury watches (e.g Rolex, Tudor, Omega), LV/Hermes/Prada goods and of course, my bank account.
Ha, yea like anyone has spare money just lying around 🙄
under my bed
I would put it back into my home loan to pay it down faster? Especially while the interest rate is so low.
(I say 'would' because although I am applying for a home loan, I don't have one just yet. But this is my plan when I do. I will be getting a variable home loan with free unlimited extra repayments)
Dumped most into my mortgage and bank account. I can withdrawn from the mortgage if emergencies happen.
100% crypto baybee
Stuffed in a sock under the floorboard, 10cm left of the power socket in the living room.
Offset account.
easily accessible should I encounter an actual emergency.
I keep a small amount of cash at home. To tide me over until I can withdraw the funds from offset.
All in the stonkmarket. All in NDQ.
phishing* scam
FTFY