What are you rolling your eyes at?
Life, Snarky_Kong. Life.
I keep almost nothing in ready cash. Right now a couple thousand. In my retirement accounts I have about 6 years in take-home pay. I have just over three years left on my mortgage, with enough in the retirement accounts to pay it off and still have 5 years in current take-home. I’ve never thought about keeping large sums on-hand, I’ve never come across something I needed it for. I save up for big things like my roof last year.
StG
Ms Hook and I, if push came to shove, could possibly live the rest of our lives (20 yearsish) on what cash and cash equivalents we have. We have no expenses other than routine living expenses (insurance, taxes, utilities, food, etc). Both of us have medical insurance through good old Uncle Sam so that isn’t likely to be much of a problem. The bulk of our retirement comes from the government (the rest is from stock dividends). So a catastrophic reduction isn’t likely.
Of course living entirely off our savings would entail a considerable reduction in our lifestyles which isn’t going to happen. We like to travel way too much. Even without reducing, our lifestyle we could make it for perhaps 5 years even if the government cut us off.
But we could do it.
If there are any dopers out there under 40 living pay check to pay check that would like to trade places with us give us a call. Being financially secure sucks compared to being young.