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Posted (edited)

Hello all, 

 

I have always read that saving a 6 month fund is worthwhile, but never took that advice seriously until now. Given the current situation, I suppose. 
 

I have a target in mind, 500,000 baht, and working toward that figure at a slow and steady pace. Not before time, many of you may say. 
 

My question is, might it be better to keep a % in the home country, and the remainder here in Thailand? Currently the UK bank I use offers 0.75% AER/Gross fixed for 12 months. Thai banks I am not sure about? 
 

I do speak with a number of friends and colleagues here, and I am surprised how few of them actually have an emergency fund, so to speak. They may have other means of security elsewhere, but seldom have a 6 month reserve. 

Edited by BOOKEMDANO
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I was taught by my Mum nDad to 'save for a rainy day', which over my working life I did. Just wish it would rain here now so I can dip into it!   PML

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forget 6-months.....worry about RETIREMENT:

 

Retire at 50...live to be 90.

 

40 x 12 x 40,000 is 19,200,000 baht.  Is it enough?  maybe, maybe not.  

 

or, if possible, keep your main house paid off, rent, then sell it when needed.  

 

 

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Posted (edited)

I have a decent medical plan (I think) with Pacific Cross. Haven’t (luckily) had to use it for an emergency yet. 
 

I also continue to contribute to paying taxes in the UK, which may, or may not, entitle me to free health care in the UK if it comes to that. 
 

I do have other investments, but just not an emergency fund. 
 

Of course retirement planning is important too, but that’s a different topic. 

Edited by BOOKEMDANO

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Posted (edited)
22 minutes ago, Ventenio said:

forget 6-months.....worry about RETIREMENT:

00Retire at 50...live to be 90.

 

40 x 12 x 40,000 is 19,200,000 baht.  Is it enough?  maybe, maybe not.  

 

or, if possible, keep your main house paid off, rent, then sell it when needed.  

 

 

Your example is ridiculous but probably a reason many do not have enough money.

Your total leaves approx. $600,000 US dollars to last 40 years?

Ever hear of inflation?

It truly needs to be invested properly and buying property here I do not believe will provide enough appreciation or income to live a comfortable/quality life.  It certainly would not for me.

And, that 40,000 a month not invested at all will have a value of about 5,000 in 40 years.

Edited by bkk6060
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2 hours ago, Sheryl said:

He hasn't asked about retirement or health insurance. He has insurance  and is just additionally wanting to have a cash emergency fund.

I'm glad somebody spotted that.

 

OP - I've always been told between 6 months and a year, and now is the time that some are wishing they had it.  Keep it in your "home" currency, wherever that may be, and don't think about interest rates at the moment.  Always top it up by inflation however.

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I am in UK atm.

With the pound is threatening to drop below 38 baht and the potential no-deal brexit it will drop further i do not want to exchange £ for THB.

What I am doing is investing in buy to let property in UK, as the market drops over the next 2 years.

Then I have an income for retirement in Thailand.

I already own a condo and vehicles in Thailand, so low overheads fir my retirement.

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Posted (edited)
1 hour ago, tiocfaidh said:

I am in UK atm.

With the pound is threatening to drop below 38 baht and the potential no-deal brexit it will drop further i do not want to exchange £ for THB.

What I am doing is investing in buy to let property in UK, as the market drops over the next 2 years.

Then I have an income for retirement in Thailand.

I already own a condo and vehicles in Thailand, so low overheads fir my retirement.



Good idea. 

I also considered 'buy to let' options as the property market looks set to drop, as you say. Would be hard to secure a buy-to-let mortgage by myself now though. Good luck with that anyway. 

Going back to the point you made about exchanging pounds for baht, I agree that wouldn't be the best move now. It does look likely to drop further with a no deal Brexit looming. However, exchanging baht into pounds and moving this into a fixed savings account in the UK could be a good move. 

For example, the more the (£) pound drops off gives me more bang for my baht, therefore boosting the 'emergency fund', plus the added advantage of that 0.75% AER/Gross interest rate back home, too. 

Is moving baht into the UK a good idea now? Possibly.. 

Will I keep some of that emergency fund here in Thailand. Yes I will. 

Edited by BOOKEMDANO

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I think your 500K target is fine for a 6 month emergency fund.  You could live on that much longer if you were frugal.  Of course that depends on whether you have a lot of debt or not too.  Probably best if you are staying here long term is to put it in a fixed deposit account in a Thai bank. Easier to access and don't have to worry about exchange rate fluctuations.  But the FD rates have been dropping quite a bit lately.  You could do as you suggest and split it between Thailand and your home if the rates are better there.

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I don't want to sound obnoxious, but 500k is peanuts.

 

Meaning 500k equivalent in your home country would probably be enough, but here it is one bog fat nothing.

 

 

 

 

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