It seems that for many Singaporeans, there is no problem with having an emergency fund. According to research by Manulife Singapore, their sample shows that Singaporeans hold an average of 33 months of personal income in cash! A fifth of this is for daily and unexpected expenses. The balance, which is being underutilised, is losing value because of inflation. So, cash is a favoured asset. Guess which asset is in second place? The property we own and stay in. Being mostly in cash is a bad idea given the paltry interest income from the banks. Inflation is chipping away at our wealth. Then, isn't our home a good investment? No, the property we stay in is not an investment. It is an asset but if it does not generate cash, it is a consumption item. In the same report, it was revealed that Singaporeans expect to only retire at age 61 and continue working for another 9 years after. That means a grand old age of 70.......