Since writing this post, I have been faithfully allocating a portion of my salary to our emergency fund. For the months of August and September, I contributed a total of $3000 to the emergency fund, bringing the total sum up to around $14000. Assuming a monthly contribution of $1500, our emergency fund will hit the target sum of $20000 in January 2018.
Well, I could accelerate the process though. I could consider bumping up the monthly contribution amount. But is this worth it? It will make me cash-strapped and miserable for the next few months, just to hit the target, at most, a month earlier?
Then there's also that small sum of money that will come in from the delisting of Croesus Retail Trust. Should it go into our emergency fund or to my war chest? As it stands, I'm going to allocate it equally between our emergency fund and my war chest.
The more I think, the more I question my own judgment. Is $20000 really sufficient to tie my mum and I over any setbacks that could arise from a recession? If that's the case, $25000 sounds like a better number. Wait! Why not $30000? The action that I will take from this realization is to continue contributing a smaller sum each month to the emergency fund once the target $20000 is hit. Therefore, I could scale up my contributions to my war chest while still maintaining some sort of contribution to our emergency fund. So, that's that.
Recently, I have also been thinking of plonking down my CPF monies into investment. For now, this is just a thought experiment. I transferred the entirety of my OA to my SA after my first year in the workforce, to aid in the compounding as well as to "try it out." Since that single occasion, I have done nothing to my CPF funds.
Sure, I could compound my CPF funds faster if I leave my OA at $0 perpetually. I'm glad that prudence won out and that there are still funds in my OA right now. I am currently trying to evaluate, from various angles, what are the drawbacks from investing with one's CPF monies during market crashes. After all, a veteran financial blogger once implied that market crashes provide sufficient margin of safety to invest your nest egg in quality, high-yielding companies that would be able to beat the OA (and, maybe, the SA) interest rate. Anyway, I can't do much. My OA is still underfunded and it will take some time for it to grow.
On the work front, my contract is renewed for the next two years. Similarly, my colleagues' contracts are also renewed. I am still cautious as it is not a funding issue but a data collection issue (see here). Soooooooo, if the numbers do not come in, the project would still fold. Oh yes! My colleagues are already celebrating (......and inflating their lifestyle). -.-
I am also on the lookout for a Critical Illness Insurance policy. That is one area where I am still lacking coverage. As there are some changes in the policy in my work place, I can no longer use my company's flexible benefits for education. Instead, I could use those same benefits for insurance instead. So, all is not too bad. I am thankful.