Social Icons

Wednesday, February 1, 2017

Working at building a boring, but so needed, emergency fund

A cash portfolio is what I have in mind these days. I am not a fan of "emergency fund", its why I am using the term "cash portfolio". Why should you put away some cash without investing it??? Well, because life is all about money. It take money to pay for rent and everything else right. In the past recent years, I never been able to actually build a a decent "emergency fund". I am 100% invested and I never been ashamed of it. I love to invest, I like the stock market. My obsession is always to find a new sexy stock to invest in. I want my money to work for me. All good, all good. I have a net work of now close to $190 000 and I came to the conclusion that time had come for me to put some cash aside.

Its hilarious in a way, to have a 190k net worth, but nothing in cash. Its actually not hilarious, its the demonstration of my disease, of my investing addiction. I unfortunately don't suffer from stock market anxiety in my everyday life. I can easily go for a week without any access to my broker account and stock market news and it don't hurt my spirit. I am in for the wild ride if you see what I mean. And you'll be all surprise to learn that I actually begin to build up a boring cash emergency fund. Luckily, not being a sexy momma is helping because I have no one to care of except my own self. I had set up my minimum monthly cash need to $1 250.

A decent emergency fund should include the minimum required to live on for 6 to 12 months. And actually, the more cash you have, the better you are. Cash is very important. And the term "cash portfolio" should remain in your mind. Because cash is needed in any portfolio, including mine - and especially mine.

Ok, so $1 250 for 6 months = what, you mean I need to put $7 500 in cash OUTSIDE the stock market???



I am a bit a cheater but I am a good cheater because I always tell my favorite readers. 

Don't forget my dividend income! (Because there's no way I can possibly keep $7 500 out of the market). Currently, my annual dividend income is of $6 932.32, a rough equivalent of $577 per month.

This lead to our conclusion:
$7 500 - ($577 x 6) = $4 038

To build a 6 months emergency fund, I need to put away, far way out of reach, $4 038 in my banking account.

See, smart girls are full of tricks.

 I will be done building the stupid emergency fund at the of March (of this year of course). I JUST CAN'T WAIT.

1 comment:

Anonymous said...

Your West Coast Hunk here - I don't know if you purposely try to tease me/us - but in a good way but some of your statements drive me wild!

"because life is all about money"
"I am in for the wild ride if you see what I mean"
"not being a sexy momma is helping because I have no one to care of except my own self"
"I am a bit a cheater but I am a good cheater"
"smart girls are full of tricks"

When I thought you reached your maximum sexiness level, you even exceed that.

I need a shower....Thank you.


Thank you

Thank you for visiting!
Blogger Templates