Of Opportunity Funds And Emergency Funds

Ever since I was sorely disappointed in March 09 when I see such bargain prices for stocks, yet I do not have the funds to continue loading, I understood the importance of Opportunity Funds. Opportunity funds are a necessity for averaging down, averaging up.... i.e. increasing your position in a security.... I didn't have any more opportunity funds in Mar 09 as I was just starting out at work, and placed my monies too early into the market, into SPH, CoscoCorp, etc.

As for now, I have $9k in opportunity funds from my active income sources. More should come by March to May (if I have not seen any value or reason for entering) from my different income sources, i.e. full time job, tuition, dividends from CapitaComm, Starhill, Starhub, CitySpring, GRP.


Next is on emergency funds. Earlier on, I mentioned I keep little emergency funds based on the following reasons:

1) my relatively stable income from my work place and from giving tuition
2) my increasing dividends amount
3) my parents are relatively comfortable, and my dad is still working
4) my girlfriend's family situation is similar to my family's

In addition, the amount I gave my mum per month is put into a savings account which isn't touched.

However, for the year 2010, my tactics will be changing. I have set aside an account with initial amount of $500 in it. Every month, I will credit $100 in... This will be my emergency funds amount, of which I will touch if I really need the cash, or when STI is below 1500 for picking bargains...