In The Bedokian Portfolio, I made a very brief mention about the emergency fund1. I also stated that it is up to you how much your emergency fund should be and it must not be mixed into the Bedokian Portfolio's cash component.
One of the questions that I had was how to build this emergency fund in the first place. I did not cover this part in the ebook as this issue is more of a personal finance topic than an investment one, but just to answer the question, I will provide some guidelines on how to go about it.
Setting the Quantum
The first thing you need to do is to set your quantum. As I had said in the ebook, it depends on the individual; be it by a number (e.g. S$5,000.00, S$10,000.00, etc.) or by the number of months’ worth of ......