My post was as clear as mud, as usual :lol: What I meant was that when I rolled over my retail superfund into our SMSF, I cashed out the non-restricted amount and shoved it in a bank account. Much more secure knowing I have $X on hand in case of an emergency, rather than having it stuck away helping some fund manager become a millionaire.
You might be onto something. The survey was apparently conducted by Ernst & Young on behalf of BT, but so far I can't find any direct sources (aka Googled) detailing the study's methodology, questions, etc. So all we've got so far is the news reports - which all so happen to come from News Corp sources like the Herald Sun and Daily Telegraph :/ . Seems like they are assuming that's $1,000 cash-on-hand. If you were desperate you could go to Cash Converters, or draw on some 'equity mate' if you have a redraw facility on your mortgage. It's not that hard to save $3-5k, if you take out 10-25% of your after-tax pay and put it aside into a separate online high-interest bank account (make it a different bank from the one you use for everyday spending - helps keep them separate). Where I work (70% female workforce, virtually all Gen Y, some Gen X's) I hear of ppl going on overseas holidays all the time, and see ppl lining up everyday for their morning coffee and lunch@our in-house cafe. It's quite mind-boggling how ill-informed ppl choose to be when it comes to money/financial matters - in this country with all the information and resources available, I don't think there's any good reasons why someone at 25yrs age couldn't be financially independent by the time they're 35-40yrs old (maybe not out of the workforce entirely, but definitely doing something they're passionate about 2-4days/week).
I understand the pain brother. Still, even though fiat stinks, it's not dead in the water and at least 3 months of bills/living expenses in cash is advisable, as well as a couple of K at least under the bed. Edit to add: And I can't spell
How common would mortgages on interest only repayments with offset accounts be compared with mortgages with principal and interest payments? It seems there is a bit of a false buffer for those with offset accounts should an emergency arise.
If was a multimillionaire I'd keep enough in a high interest account for me to live off the interest. But seeing as I'm not rich I agree inflation is a very good reason not to be in cash
