I keep 1 year worth of income in savings account for life, everything after that, is invested. For some reason people act negatively when they find out I do this.
Why do you have such a problem with me having 1 year worth of income in savings? I don't believe its "safe" to invest every single dollar, and I believe it's a good idea to have a safety blanket of easily accessible money in a bank account, and not tied up.
6 months of income in savings doesn't feel safe to me, 6 months goes by really quickly. To be honest I don't even feel 100% secure with only 1 year, I'd feel 100% secure with 2 years of income in savings, but I know its being too paranoid, and that I am better off investing anything over 1 year.
The odds that you will suddenly need that much money is very low, but the odds that you will lose value holding it in a savings account is 100%.
Austin Taylor
Yes and that’s a sacrifice I’m willing to make.
It’s like how I maintain a 6 pack, I do it by sacrificing about 40lbs off my bench press.
Justin Lopez
But core helps with the bench press?
Nicholas Edwards
>reddit spacing
Leo Gomez
Ok.
John Thompson
The amount lost in a short time frame (e.g. 2-3 years) is negligible though
Ian Kelly
Cash on hand loses an average of 3% value a year due to inflation even more in times like now its more like 5%. Meanwhile most US banks give you a fraction of a percent interest and even "high interest" checking/saving accounts barely give you over 1%. Theres a number of investment opportunities that are quite secure while offering a much better return, enough to beat inflation even.
If you are absolutely resolute in keeping your money safe then you should buy physical gold and silver bullion. This will keep your money safe no matter what happens and is very easy to turn back into cash, you can literally walk into your LCS (local coin shop) with a few gold coins and walk out with a $10k-$20k check.
Asher Morris
Sounds good op
You can lose it on investment as well since nothing is guaranteed. I guess a CD would be nice
Robert Bailey
It's about having quick access to money, not to keep it safe
Camden Gutierrez
PMs aren't a good idea for short and even middle term emergency funds, the spreads will incur you at least a 5+% loss >you can literally walk into your LCS (local coin shop) with a few gold coins and walk out with a $10k-$20k check Not always, under hyperinflation scenarios sometimes arbitrage breaks, look at the Venezuelans who had to fire sale their gold at like 5% their market value
Samuel Evans
post body
Carson Flores
Most people live paycheck to paycheck. To think that someone could have a whole years worth of money that could be used to buy a bunch of stupid shit is unfathomable to most people.
Caleb Jenkins
Sounds fiscally responsible. At the end of the day speculation is just that, and everyone has their own "code" or system. You should be free to invest or save however much money you want
Jonathan Carter
The conservative man always wins in the long run.
Chase Myers
I do that too but I consider gold+silver as savings too, so savings = savings account + gold and silver. my proftolio is 70% savings
Mason Cox
Most people are retarded too
Josiah Hall
this, keep 3 month cash gold are real savings
Henry Stewart
enjoy your victory while frail and withered in senility
Matthew James
I do the same thing, OP. It gives me a feeling that if I don't do this, I'd be in a position where I couldn't quit my job. My mind is fucked.
Ian Flores
I have 30 years of expenses in the stock market. It would have to drop 97% overnight for me to be in trouble.
Isaiah Reyes
This is reddit spacing. Paragraphs is not reddit spacing. The distance between your ID and the start of my post is reddit spacing. Why haven't you learned this yet.
Brayden Ward
Why would you care what people think? It's your money. Some people feel comfortable with a month or two and others feel comfortable with 1-2 years.
Jonathan Williams
I think it's a great idea, user. What's the actual amount? I've always had the same insecurity in the back of my mind and wanted that peace of mind too. I just got hired into a job that pays $130k and my total monthly expenses are only ~$900-$1200, inclusive of rent, bills, food, and entertainment. The bonus that I received already gives me a 2 year cushion but even that doesn't feel like enough at this point. I haven't even gotten my first paycheck yet and I already feel like I'm turning into Smaug or one of ((((them)))).
Aiden Butler
2020-2021-2022
Jason Rogers
Why do you tell people what you do with your finances? It’s none of their business.
Benjamin Bennett
Personally 1 year is too much for me, but depending on your situation, it's not a bad idea. I support your decision and I think you're a responsible person.
Charles James
i think it's a fucking great idea better safe than sorry
Elijah Stewart
You don't get a 6 pack by doing 10 trillion hanging raises, you get it by being low BF. You're also going to be stronger when you carry some more BF.
Benjamin Russell
Because people are financially irresponsible shit brains that have panic attacks whenever they meet people with a positive net worth. First, because the only thing validating their moronic lifestyle of spending 150% of their paychecks is the fact everyone around them is doing it. Second, because spending for these "people" is a legitimate addiction and you revealing that you have spending power of any kind is like walking into a house full of heroin addicts and telling them you have 5 lbs of pure white heroin in your pockets. Never fucking tell anyone how much money you have. The vast majority of the time that will be the first developmental milestone you have that either makes or breaks you after you start building some wealth. Just keep it a secret, lie, or whatever.
Lincoln James
I have a year of income ready to withdraw from AAVE at any moment Educate yourself on credit lines and opportunity cost OP, you won't outpace inflation in a savings account.
Camden Morgan
Was about to come in here to post about this myself. Aave truly changed the way I think about finances.
Benjamin Gray
>because spending for these "people" is a legitimate addiction and you revealing that you have spending power of any kind is like walking into a house full of heroin addicts and telling them you have 5 lbs of pure white heroin in your pockets. Based and true
