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:

Action points:

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.

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