Account or to try Renaissance dental to invest that money rather than keeping it cash which a lot of people fall into that temptation Renaissance dental when they see a big lump sum if you think that that’s what’s going to happen and conceptualizing that money into smaller buckets will help reduce.
That temptation then go for it but at the end of the day it’s gonna be $, in this hypothetical example it would be $, one way or the other like no matter how you slice it the total amount is the total amount and so that’s the real question .
That you want to grapple with because the rest of it is just a mental construct of how do you frame it so then let’s go to the other question which is what should that total amount be now the absolute minimum that I would recommend for anybody is three months of gross rent but that is a minimum to get started it’s not the optimal amount the optimum amount .
I would say is between six to eight months of gross rent once you reach this number once you’ve saved between six to eight months of gross rent then at that point I think it’s perfectly fine to dial it back so to the latter half of your question .
Which is at what point can I stop paying myself for rent out of my own w income I would say wait until you have the six to eight months and then you can stop paying yourself rent and start using your w income in some alternate way like saving up for.
A down payment on your next rental property let me add one more point for the sake of clarification when I say sub buckets are purely a mental construct or a framework what I mean by that is that let’s say that your total emergency fund is $, in theory you could subdivide that out such that , goes