Emergency Fund and Capital Expenses Amounts
How do you calculate what you need for an emergency fund and capital expenditures?
There's a lot of advice out there surrounding this that includes 3-6 months of expenses in a HYSA or putting away ~8% for each rental for capital expenses. I have 4 doors (3 rentals and 1 primary residence) and keeping 6 months of expenses in a HYSA sometimes feels like that money could be growing at a faster rate elsewhere.
Looking to see what other people's strategies are for this or how they calculate their capital expenses and emergency funds to prepare for the unexpected.
Most Popular Reply
When I was starting out, I typically would keep around $20,000 in a savings account, as my portfolio grew, I have a line of credit that is available but rarely use or only use it in case of emergency so I do not need to keep the cash liquid and can put it on higher yield investments but still have it available if I need it
- Chris Seveney
