As with many other questions on this foram, this is directed at cash flow and the standard answer, especially for those who own a home, is to have a cash and/or liquid reserve of no less than three months and no more than six months. It's important to bear in mind that these are simply rules that we've used for many years. Your personal cash flow should dictate a more concise answer and based upon current market conditions, keep in mind that many of us feel that "cash is king". Cash does not earn much in the form of interest at the present time but, it also doesn't go down in value if the markets determine that it is overly priced. When dealing with a personal residence and family, being conservative with these funds is critically important. Prepare your own cash flow of income and expenses and make a distinction between those expenses that are discretionary and those that are fixed. This should help you put together your own plan and guide you to a conclusion that make sense for you and your family. Good luck
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