Reserves vs. spending/enjoying cashflow

[Brian R.]

I was hoping to poll those willing to share on your personal practices for keeping reserves as buy and hold investors. If you are willing to shed some light on your philosophy behind your practices that would be even more helpful.

I am working with the rough idea of [12xPITI + 1 month's rent + my insurance deductible] as a 'formula' for my reserve fund goals.

Something I am considering is taking my cashflow and splitting it in half. 50% for me to enjoy now and 50% for reserves and to build funds for future properties.

A little back story, I am investing in real estate to subsidize my own lifestyle, a freelancer/traveler. I want more property in the future for sure but also want to allow the fruits of my labor thus far to positively touch my life now [ie. spend some money].

Thoughts are appreciated and I am open to hear it all!