Hi!
A little bit of a different "where to put my emergency fund question".
I'm getting laid off at the end of September and have about $57K coming in severance/retention. I'm trying to figure out what to do with it.
I have a host of side gigs in addition to my 9-5 that are all "extra" money, plus I'll be picking up some freelance work...so my regular paycheck will be replaced upon separation. All living/day-to-day expenses will be covered + retirement savings to meet $18,500 (but could contribute more, if I can, based on business earnings).
My 9-5 salary is/was $108K. But my side income goes away since it becomes my regular income -- boo. It will take some time to scale but hoping to hit my old salary + side gig total $$ over the next few years.
My side income was used as play money - extra investing, a vacation here or there, necessary home repairs, etc. It was obviously also a nice safety net just in just we case we spent a bit extra in one month, so whatever I do with it, I want it to be accessible just in case we need it. We'll obviously work on tightening the budget, as well - I'll admit we've been loose with the budget at times since we had such a cushion.
Our current savings situation:
- We have our "actual" emergency fund earning a bank bonus as we speak in a Citi account right now - $25K. After this is done, will move to an Ally-type bank
- 401Ks maxed (I upped my contribution to hit my max before I leave)
- Roths ineligible due to income
- HSA not at max so could think about increasing there
- No debt aside from mortgage
Where should I put my severance/retention? Because we have our regular emergency fund I'm willing to up the risk factor a little.