You are of course entirely correct in saying that this is far too little to retire on. However, it is possible to save without being able to liquidate said saving; for example by paying down debts. The Emergency Fund advice is that you should make a point to have enough liquid savings tucked away to tide you over in a financial emergency before you direct your discretionary income anywhere else.
Ah… I see. We keep most of our savings liquid. Safe i.e. government guaranteed investments at the biggest banks here are like 0.5% a year (the Kapitalsparbuch thing here in Austria), sot I don’t give a damn. And I would rather not gamble on the stock exchange. If I would see inflation I would care, but then I would also see more decent interest rates.
You are of course entirely correct in saying that this is far too little to retire on. However, it is possible to save without being able to liquidate said saving; for example by paying down debts. The Emergency Fund advice is that you should make a point to have enough liquid savings tucked away to tide you over in a financial emergency before you direct your discretionary income anywhere else.
Ah… I see. We keep most of our savings liquid. Safe i.e. government guaranteed investments at the biggest banks here are like 0.5% a year (the Kapitalsparbuch thing here in Austria), sot I don’t give a damn. And I would rather not gamble on the stock exchange. If I would see inflation I would care, but then I would also see more decent interest rates.