How much do you hold on deposit? It is recommended that an emergency fund is held of at least the equivalent to 3 months income that could tide you over were you unable to work or unemployed for a short period of time. The reality is that how much you feel comfortable in retaining in the bank is a very personal matter, some people will hold a minimum of 3 months income others will hoard thousands for a rainy day.
The importance is to consider any short term liabilities you may encounter and hold sufficient, then seek to commit excess cash to a longer term investment that will seek to offer a return that combats inflation. The reality of holding a large amount in cash in a low interest environment is that funds are not keeping pace with inflation and an alternative strategy may be prudent for achieving longer term aims:
Assess how much you are holding on deposit.
Work out the 3 month minimum and add on sufficient to cover any short term liabilities or to make you feel it’s a comfortable buffer.
Calculate the amount that you have potentially to invest.
Get in contact and see if we can help to advise and recommend a suitable alternative to cash deposits to assist you in achieving your overall financial objectives.
Please email or call Alison (07496 689 309) or Adrian (07725 343 815) for a no obligation review of your circumstances.
Alison Davis and Adrian James are authorised and regulated through Mulberry Wealth Management Ltd. Mulberry Wealth Management Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA). Our Financial Services Register number is 499351.