Q: How much should my contingency fund be?

A: Contingency fund ialah cash yang kita simpan di tempat yang selamat (no risk to market crash etc.) untuk kegunaan just in case we loose our income ie. loosing job or become disable etc.
In our class, we were told to keep 3 to 6 months of monthly expenses as contigency fund. Remember, it is month expenses not monthly income ya.

Some people expenses melebihi income, ada pula yang monthy expense is less than income.

Kenapa 3-6 months? Sebab dalam 6 bulan tu kita mungkin sempat cari kerja baru, atau cari sumber pendapatan baru, atau cukup masa untuk prosess nak liquidify (mencairkan) investment. eg. Nak jual rumah atau tanah take time.

So, what does this mean to you is: Please immediately secure ~6 months of your monthly family expenses somewhere safe.