It used to be
5% of income that all goes into a cash envelope. We pull money from it if there’s any large purchases for the parents or flush into red envelop during Lunar New Year.
The experiment
Luckily, our parents are in good financial shape and that gave us room to plan for the future.
The idea came from Linda. We’ll experiment with splitting it half-half. Half in cash for the sort term expense; half in ETFs for long term cash flow.
The success factor is whether 2.5% is enough to cover the sort term expense.
