On this topic -- what is a good split between savings/stock portfolio? I understand it's best to have six months of expenses saved up as the golden rule -which is also extremely hard to do! And I think it's viable to invest a certain amount each month, although this pandemic has impacted the stock market making it a great time to buy in more than normal.

Do you have any input here ensuring I'm not going overboard and being safe, while trying to also think long term? 

Thank you! 

Original Post

@Jordan Blum I don't think there's an exact savings/investing ratio you need to follow. But you're right about thinking long term. I don't think you should rush to invest more just because the market is down right now. Unfortunately, things could get worse before they get better, so I wouldn't make any big decisions about investing just because the market is down.

I completely agree with you that six months of emergency expenses is really difficult to attain for the average person. For most people, it takes years to achieve. So both building an emergency fund and investing are long-term goals.

I always suggest taking advantage of an employer's 401(k) match as long as you won't get behind on bills as a result. Beyond that, try splitting the excess money you have 50/50 toward your savings and investment.

One rule many people follow is that you shouldn't invest money you'll need in the next five years. I think that advice can also be unrealistic for normal people, but you get the gist: Only invest money that you won't need in the short term so that you can afford to ride out whatever the market does.

On that note, if you're afraid you might need to tap your emergency savings to get through the next couple of months, I would focus on building savings right now, rather than taking advantage of market lows. But if you feel like your finances and job are stable, figure out how much you can afford to save and invest each month and proceed as if coronavirus weren't a thing!

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