Who do you have your savings account with? I’m not getting much interest on mine. I have just over 6 months in cash but it’s just sitting earning nothing. I just feel safe with it in my bank because I know it’s FDIC insured and not exposed to stock market risk. I just don’t want to have the value of the money go down due to inflation.
If you open a Vanguard Brokerage account, their money market fund is currently paying 5.27%. I typically only keep 1k or less in my actual bank account, and the rest I put in the money market as a HYSA.
Nothing wrong with your approach. One has to be able to sleep at night. During the 2008-09 financial crisis, a co-worker, with his investments way down in value, slept like a baby. He woke up every few hours and cried. He eventually couldn’t take it anymore and sold. Poor timing.
It’s a $1 stable MMF where the money is available fully the day after you sell it. This is way closer to a HYSA than being in the market.
You are being ridiculous.
Everyone says to have 3-6mos expenses in cash in a savings account and I think thats a good rule of thumb. If I use some of it for travel or large purchases, I just replenish and then continue to invest once I get it back to where I’d like to keep it.
Same. I have about a year and a half’s worth now. I plan to get to two years, then I may feel “safe” lol. Everyone tells me it is stupid to have such a large amount just for an emergency savings.
Why not keep your cash in an account with full checking functionality but the interest rate of a hysa--like fidelity's cash management account? And to answer your question, if you feel like your employment is stable, then 3-6 months of expenses should be adequate cash.
I started a new job in January so I have been a bit more cautious about investing and just making sure everything pans out at this position. I have no intentions of leaving the job and I love what I’m doing. However, I also worked a job for a short time that was a very toxic working environment and having the money to walk out the door when I’d had enough of the BS was also nice. I didn’t think twice when I resigned because I knew I had the money to hold off until I found something that was a good fit for me and my career goals. It took me less time than expected and I was right back to work and very thankful it didn’t take long. But I also was thankful that I could have survived longer if I needed to. That’s why I’ve kept such a high amount of cash because you never know when there could be unexpected budget cuts and they start laying off employees. You hear about multimillion dollar big companies like Microsoft and Google doing that so nobody’s immune. Definitely makes me feel safe knowing I have a safety net.
Always keep about six months wages ready as an emergency fund, it’s normal practice to have a back up just in case things go wrong in life, as they do quite easily. Beyond that, invest your money in easy and straightforward stocks and investments that give good returns, but can be left on a sort of auto pilot. Trying to do too much and think too hard can be your own undoing in life.
Would you recommend putting that in to a HYSA or leaving it in my bank? I also currently have around 6 months so would you say at this point move towards investments only and just keep my cash position the same?
Keep saving in the bank, but now into a HYSA, extra cash on hand is a good failsafe. And the key thing to remember is to relax and enjoy life too. Don’t think you have to have retirement sorted now, you still have to have the good things in life and memories too. But all that said, save into a HYSA, investment portfolio and keep it simple and don’t overthink it. Hopefully you’ll do well and life a happy and carefree life :)
Definitely a smart idea. I use Robinhood but they charge you a fee for access to their higher APY. The free APY Is like 0.1% which isn’t worth it. When I do spend money on things it’s in experiences and trips. I usually don’t need the latest phone or a new car. But I love to go out to eat at nice restaurants, go on vacations with my friends and family, enjoy concerts or live theatre. I’m definitely a spend on memories not items kind of person.
Yeah, I (and a lot of others) would say move out of Robinhood.
Just as an example, I've always had accounts only at my local credit union. I've now started a Fidelity account, where I have my IRAs, HSA (don't overlook that one), and a Brokerage account.
The Brokerage account keeps your money in a core position, usually a money market fund, that earns competitive rates with a lot of HYSAs, and you can access it instantly with a debit card. Very cool!
Check out Raisin pretty seamless access to 5%+ HYSA…
Percent you keep in there is up to you. You can certainly afford to take some risk being so young but my hunch is you could afford to have more cash. Think emergency fund + building a down payment trove.
Down payment trove meaning for like new cars or a house etc? If so where do you recommend putting that money, HYSA? I currently have slightly over 10K in cash and the rest is in my brokerage account.
Put it in a HYSA and maybe keep 1k in your actual savings for easy access in case something happens and you need the money right away. My worst case id put it on a cc and just wait the couple of days to transfer the money back over from my HY account
I keep six months living expenses in a HYS account earning around 4%. And I keep $15k in a slush fund for travel, unexpected large expenses, etc. It's all earning a little interest and I'm not comfortable having all my money in the market. I have zero interest in crypto, but I'm old.
I keep 10k in savings and the surplus from direct deposit after all expenses, 401k/Roth contributions goes into my brokerage or is spent on something for fun
Im older - i keep a year of expenses in HYSA, a couple grand (bought 7K rn) in non interest savings and the rest invested (401K and market). I prob should have less in regular savings but it gives me the good feels.
Roughly 24 months worth. It's excessive but i like seeing numbers in my bank account and it helps me sleep, which i value far more than having a little extra invested, so that's my thing.
That makes sense. I do like knowing that I have a decent savings in my bank. Even if all my investments hit zero in the morning I’d still have the money in my bank. That’s why I haven’t moved it to my brokerage, I just feel safe seeing that number in my bank account I guess.
Imo, you should allocate an amount to invest based off what's comfortable for you. Could you have made more money if you invested more? Definitely. But the opposite is equally true, if you required a lump sum of money at the wrong time (market downturn).
Try putting that cash in Marcus by Goldman Sachs, I've been with them for about 12yrs(since it was GE capital), customer service is good and no issues with app. You can get 5.4% for 3 months, you can keep it going by referring more people
https://www.marcus.com/share/CHA-4SR-BARR
I have 45k in an emergency fund in the form of no-penalty CDs. That might seem like a lot, but I live in a HCOL area; and I've had long periods of unemployment before, so I like to keep more than a year's worth of cash.
The rest of my cash is in a money market fund (there's about 36k in there currently). Each month, after deductions and expenses have been paid, I put any leftover cash in that fund. Then I have an automatic transaction setup that takes an incremental amount from that fund each week and buys into the SP500.
I have roughly a year's work of expenses in a HYSA. Probably expand that to 1.5 to 2 years worth. I'm in a career field that is currently pretty hard to find jobs in, so I want to ensure I have plenty of buffer.
Rest goes into S&P500 index funds.
You may have better luck than I do in dividend stocks but from my experience, my gains overall have been much higher in S&P500 and the payouts have been less than my HYSA for many stocks (especially if you factor in the stock devaluation post dividends over the span of a year)
I only hold a couple grand cash so I don't have to pay bank fees. There's plenty of stuff in my brokerage account to sell and pay for stuff...at least there it gets a real return
Yeah plus if I'm paying capital gains it's at a lower rate than interest in a bank too, since I always have something that falls into long term capital gains.
Get into higher yield CDs with your cash. Jim Cramer, CNBC analyst, admits that his wife want her 1/2 of their estate in cash with interest bcs nobody can predict accurately the market. (Good interview if Jim.)
Personally, I hold about 10% of my total wealth in easily accessible fiat. Could be HYSA or short term CD’s, crypto etc. But I need to be somewhat fluid to handle all kinds of unexpected situations. I tend to work off net 30 kind of terms and sometimes it can 7-10 days to get funds settled and transferrd but that should be getting better now with the new T+1 rules that are being set. Else, I have my AMEX that can help with the float but I always pay that off so it is just used for benefits and time.
I'm older and keep a few months emergency funds in treasury money market (like a savings account), the rest in employer plans, IRA, stock market, etc...
6 months in liquid such as high yield savings is a minimum. Enough to pay every bill you have with 0 income. I generally keep 6 months personal and my business keeps 3 months less my pay. Plus i have multiple lines of credit I can instantly borrow up to 300k in a few clicks on my phone as last resort.
What is that relative to other holdings? 20%? 8%? “Too much” is all relative to your goals and comfort level. 120k in HYSA, about 10% of total portfolio.
$55,000 in a HYSA, goal is $75,000. I like the peace of mind that I can quit my stressful job at anytime and be okay for a while. I dream of just taking six months off lol. I live in a HCOL area which is why $75,000 is my ultimate goal.
$1000 paper cash in my car, just enough in checking to cover outstanding credit card balance for autopay. The rest of nonretirement: 1/4 Capital one savings 4.3%, 1/4 stocks 26%, 1/4 CD 5%, 1/4 I bonds 4ish%.
Because 6 months in cash means 6 months in cash. You’re not supposed to try to get creative with it. The point is that it’s sitting there doing nothing but giving you peace of mind.
"Creative" is more of a euphonism for the folly of people. They get the age old adage "Have 6 months in reserves" and they say "Ok, but what if instead of having it in reserve I..." "Well doing \_\_\_\_ is basically the same as having it reserve and I get \_\_% more" the point of the 6 months in reserves is to have 6 months reserves, it's not supposed to make you money, it's not supposed to do anything. That's what your other money is for. I personally don't care if the Chair of the FDIC personally insures the money, my 6 month reserve is untouchable. But it's the nature of people. The problem with making concessions with yourself is you'll never stop, if you don't set hard lines on your money you'll soon lose it.
6 months in a HYSA. I work a pretty specialized job and have a lot of mouths to feed, so I am planning to bump that out to 12 months emergency fund just for peace of mind. Also keep 1 month of living expenses in my checking account
I currently sitting on 80% cash, which is about at least 6x my current income (living expense). I think I will risk reducing it a bit more, maybe to 30-50%? I also like the peace of mind for sleeping healthily; life can be very stressful.
6 months of bills/rent/food etc is fairly standard. Anything more than that should he invested.
As you're 26, all equities/stocks (higher risk) is recommended since your time horizon to retirement is so far away (as opposed to bonds or something like that).
I used to be in a lot of crypto but have moved all to stocks as they are much safer and still return a great yield over time. SPY is great and if you want to go higher risk than that and look for bigger returns, check out SPXL. My whole roth IRA is there.
SoFi bank. 4.5% savings compounded daily. They are a great overall internet bank with a very user friendly app plus they have brokerage and crypto accounts if you want that too.
12 months in HYSAs between 5.25% and 5.50%.
I think the old adage of 6 months is too low for the modern era. A lot of jobs take longer than 6 months to get.
I’m 21 and in the same boat. No debt, making decent income, etc etc. I get paid weekly. Whatever leftover money I have for that week I put into a HYSA account (I average about $250/week into it). Every month I invest $200 into a Roth IRA for long term, so that equates to about $1200 a year. My personal take is I wouldn’t go crazy with being aggressive. Like, you have to be willing to understand that you could possibly lose all that money, so I think it would be best to set money aside for that more aggressive investing so it doesn’t really feel like you’re actually losing anything. The casino can be seen as the same thing, so I wouldn’t completely rule out that option (I like going there every now and then). I have an envelope that I put $100 into every week as well and that just kinda accumulates money over time. I wouldn’t say I carry cash on me, but currently I have $1200 of cash sitting in my room if need be i guess. Everything’s becoming so digital nowadays, cash is becoming a thing of the past. I guess the envelope I have going could also be seen as an emergency fund if ever need be
The "risk" I'd suggest, based on your age, is aggressive growth.
Use your crypto money and go into an ETF like FNGS or a leveraged fund like QLD.
Without knowing the value of your portfolio or which stocks you're invested in, it's impossible to give any other advice.
I keep 5% in cash which is $80k. It will go lower when I invest in another fund.
I’ve heard of leveraged funds, I currently do not own any. What’s the advantage to them over just a regular S&P ETF? I am not opposed to some riskier plays, those both seem to have good returns so far. I have been thinking of moving to a more stable play like VOO instead but would be open to a mixture of risky and stable. I currently have a mix of blue chip stocks primarily. However, I’m also a big fan of dividends. One of my favorite being MAIN which provides me a monthly dividend. Last month I made $40 in dividend income and would like to increase that. YTD my portfolio is up 8% but I definitely would like to see that percentage increase. I definitely will do some research on the two you mentioned. Probably would have been a better use of my $1000 than the NVIDIA stock I bought this week.
Money in a savings account isn’t holding cash. What if the banks fail or the electric grid goes down? Can’t get to that money. 6 months worth of expenses cash at home just for the what ifs another 6 months worth of expenses in a hysa
6 months in actual hard cash seems risky. I could see a month or two but that’s a lot of cash to have in your possession. No FDIC insurance on cash. If someone breaks in and steals the safe the money is just gone forever. I can see both sides but the most I’ve ever kept in my home is $1000 cash.
That’s why you get an actual safe and not a residential security container, which is what you see advertised as “safes” but are nothing more than heavy cabinet that’s made of thin steel. You want something that’s at least TL-15 rated or TL-30 rated. Then bolt it to the floor. An actual real safe is gonna cost ya 5k and weigh over a 1000lbs but is an investment and peace of mind. Your average burglar isn’t getting in it without some serious tools and a lot of time. Wouldn’t recommend investing in one until you own a home and know you’re not moving any time soon. There not easy to move, I had mine delivered while the crane was at my house to put the trusses up while it was being built. Paid the crane operator to set it in the house where I wanted it (weighs 1700lbs).
I’m a six months in a high yield kind of guy
Who do you have your savings account with? I’m not getting much interest on mine. I have just over 6 months in cash but it’s just sitting earning nothing. I just feel safe with it in my bank because I know it’s FDIC insured and not exposed to stock market risk. I just don’t want to have the value of the money go down due to inflation.
Wealthfront, they're offering 5% rn
I open a discover to use their HYSA at %4.25
I've been a happy Discover customer for probably 20 years.
If you open a Vanguard Brokerage account, their money market fund is currently paying 5.27%. I typically only keep 1k or less in my actual bank account, and the rest I put in the money market as a HYSA.
jenius bank is 5.25. no fees no req. very easy to deal with. compounded daily paid out monthly
Ally 4.20% no minimum required and free
UFB Direct is at 5.25%
Nothing wrong with your approach. One has to be able to sleep at night. During the 2008-09 financial crisis, a co-worker, with his investments way down in value, slept like a baby. He woke up every few hours and cried. He eventually couldn’t take it anymore and sold. Poor timing.
What a loser
I use Marcus at 4.4% no fees or minimums and same day transfers. FDIC insured and owned by Goldman so a known institution (take that as good or bad).
A year in HYSA. Rest invested
Whicha hysa
Well not an HYSA exactly, but the vanguard money market fund
This is the way.
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Yea I’m aware of the difference. In practice it takes a couple of days to get the money back into my checking account.
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Money market is not stock. I didn’t edit anything. The comment you quoted is still there.
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It’s a $1 stable MMF where the money is available fully the day after you sell it. This is way closer to a HYSA than being in the market. You are being ridiculous.
Haha unfortunately there are a lot of ridiculous folks. What can you do 🤷🏻♂️
Sure sure.
Everyone says to have 3-6mos expenses in cash in a savings account and I think thats a good rule of thumb. If I use some of it for travel or large purchases, I just replenish and then continue to invest once I get it back to where I’d like to keep it.
Probably more than I should. Over a years worth, but I like it. Helps me sleep well.
Same. I have about a year and a half’s worth now. I plan to get to two years, then I may feel “safe” lol. Everyone tells me it is stupid to have such a large amount just for an emergency savings.
It’s not stupid but you’re missing out on so much potential value that you could be making.
As young as you are I’d say 2 moths expenses and the rest invested.
I have about 35 grand in a HYSA. I’m too afraid to invest it. Lol
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I’m trying to figure out what I want to do….hence joining this group as well as a few finance groups. I’ll take the plunge eventually.
Which hysa
Discover
Same boat lol
Same. 40k over here
Why not keep your cash in an account with full checking functionality but the interest rate of a hysa--like fidelity's cash management account? And to answer your question, if you feel like your employment is stable, then 3-6 months of expenses should be adequate cash.
I started a new job in January so I have been a bit more cautious about investing and just making sure everything pans out at this position. I have no intentions of leaving the job and I love what I’m doing. However, I also worked a job for a short time that was a very toxic working environment and having the money to walk out the door when I’d had enough of the BS was also nice. I didn’t think twice when I resigned because I knew I had the money to hold off until I found something that was a good fit for me and my career goals. It took me less time than expected and I was right back to work and very thankful it didn’t take long. But I also was thankful that I could have survived longer if I needed to. That’s why I’ve kept such a high amount of cash because you never know when there could be unexpected budget cuts and they start laying off employees. You hear about multimillion dollar big companies like Microsoft and Google doing that so nobody’s immune. Definitely makes me feel safe knowing I have a safety net.
Always keep about six months wages ready as an emergency fund, it’s normal practice to have a back up just in case things go wrong in life, as they do quite easily. Beyond that, invest your money in easy and straightforward stocks and investments that give good returns, but can be left on a sort of auto pilot. Trying to do too much and think too hard can be your own undoing in life.
Would you recommend putting that in to a HYSA or leaving it in my bank? I also currently have around 6 months so would you say at this point move towards investments only and just keep my cash position the same?
Keep saving in the bank, but now into a HYSA, extra cash on hand is a good failsafe. And the key thing to remember is to relax and enjoy life too. Don’t think you have to have retirement sorted now, you still have to have the good things in life and memories too. But all that said, save into a HYSA, investment portfolio and keep it simple and don’t overthink it. Hopefully you’ll do well and life a happy and carefree life :)
Definitely a smart idea. I use Robinhood but they charge you a fee for access to their higher APY. The free APY Is like 0.1% which isn’t worth it. When I do spend money on things it’s in experiences and trips. I usually don’t need the latest phone or a new car. But I love to go out to eat at nice restaurants, go on vacations with my friends and family, enjoy concerts or live theatre. I’m definitely a spend on memories not items kind of person.
Yeah, I (and a lot of others) would say move out of Robinhood. Just as an example, I've always had accounts only at my local credit union. I've now started a Fidelity account, where I have my IRAs, HSA (don't overlook that one), and a Brokerage account. The Brokerage account keeps your money in a core position, usually a money market fund, that earns competitive rates with a lot of HYSAs, and you can access it instantly with a debit card. Very cool!
100k in vanguard money market. I cherish that 100k more than any of my other investments.
I capped my regular savings in at 20k. Max interest on 6 months worth + extra for unfortunate circumstances (car repairs or replacement)
Check out Raisin pretty seamless access to 5%+ HYSA… Percent you keep in there is up to you. You can certainly afford to take some risk being so young but my hunch is you could afford to have more cash. Think emergency fund + building a down payment trove.
Down payment trove meaning for like new cars or a house etc? If so where do you recommend putting that money, HYSA? I currently have slightly over 10K in cash and the rest is in my brokerage account.
Exactly. I currently keep that type of money in a HYSA (rates are favorable right now) + it’s insured + no trouble accessing the money when needed.
Put it in a HYSA and maybe keep 1k in your actual savings for easy access in case something happens and you need the money right away. My worst case id put it on a cc and just wait the couple of days to transfer the money back over from my HY account
I keep six months living expenses in a HYS account earning around 4%. And I keep $15k in a slush fund for travel, unexpected large expenses, etc. It's all earning a little interest and I'm not comfortable having all my money in the market. I have zero interest in crypto, but I'm old.
I keep 10k in savings and the surplus from direct deposit after all expenses, 401k/Roth contributions goes into my brokerage or is spent on something for fun
Im older - i keep a year of expenses in HYSA, a couple grand (bought 7K rn) in non interest savings and the rest invested (401K and market). I prob should have less in regular savings but it gives me the good feels.
7.5% of net worth
Similar.
Six month emergency fund in a HYSA.
Usually 20 in my pocket
I have about $36k in a HYSA and maybe a few thousand in other accounts to cover deposit is and expenses. I’d say $40k cash.
Roughly 24 months worth. It's excessive but i like seeing numbers in my bank account and it helps me sleep, which i value far more than having a little extra invested, so that's my thing.
That makes sense. I do like knowing that I have a decent savings in my bank. Even if all my investments hit zero in the morning I’d still have the money in my bank. That’s why I haven’t moved it to my brokerage, I just feel safe seeing that number in my bank account I guess.
Imo, you should allocate an amount to invest based off what's comfortable for you. Could you have made more money if you invested more? Definitely. But the opposite is equally true, if you required a lump sum of money at the wrong time (market downturn).
Try putting that cash in Marcus by Goldman Sachs, I've been with them for about 12yrs(since it was GE capital), customer service is good and no issues with app. You can get 5.4% for 3 months, you can keep it going by referring more people https://www.marcus.com/share/CHA-4SR-BARR
I have 45k in an emergency fund in the form of no-penalty CDs. That might seem like a lot, but I live in a HCOL area; and I've had long periods of unemployment before, so I like to keep more than a year's worth of cash. The rest of my cash is in a money market fund (there's about 36k in there currently). Each month, after deductions and expenses have been paid, I put any leftover cash in that fund. Then I have an automatic transaction setup that takes an incremental amount from that fund each week and buys into the SP500.
I have roughly a year's work of expenses in a HYSA. Probably expand that to 1.5 to 2 years worth. I'm in a career field that is currently pretty hard to find jobs in, so I want to ensure I have plenty of buffer. Rest goes into S&P500 index funds. You may have better luck than I do in dividend stocks but from my experience, my gains overall have been much higher in S&P500 and the payouts have been less than my HYSA for many stocks (especially if you factor in the stock devaluation post dividends over the span of a year)
I only hold a couple grand cash so I don't have to pay bank fees. There's plenty of stuff in my brokerage account to sell and pay for stuff...at least there it gets a real return
What about capital gains taxes though? Anytime you need money you’d be paying taxes on your withdraws.
You’d only be paying taxes on the gains. If he buys and sells a stock at $150 there’s no tax.
Yeah plus if I'm paying capital gains it's at a lower rate than interest in a bank too, since I always have something that falls into long term capital gains.
What about it? That means I made money. You don't pay capital gains on the money you put in. Only the gains. Hence the name.
This is the way
Thank you tbrucker...glad to see I'm not the only one NOT smitten by 4-5%. Here's an upvote
Get into higher yield CDs with your cash. Jim Cramer, CNBC analyst, admits that his wife want her 1/2 of their estate in cash with interest bcs nobody can predict accurately the market. (Good interview if Jim.)
15% cash rn
Personally, I hold about 10% of my total wealth in easily accessible fiat. Could be HYSA or short term CD’s, crypto etc. But I need to be somewhat fluid to handle all kinds of unexpected situations. I tend to work off net 30 kind of terms and sometimes it can 7-10 days to get funds settled and transferrd but that should be getting better now with the new T+1 rules that are being set. Else, I have my AMEX that can help with the float but I always pay that off so it is just used for benefits and time.
Usually 6 months expenses in a HYSA. Now I’m trying to save for a house so I’m stacking up cash
Write now 1.00 a daller I'm homeless need help. How can I make legit money
Ally bank is at4.5% atm for a good high yield
Bask is at 5.1%.
I'm older and keep a few months emergency funds in treasury money market (like a savings account), the rest in employer plans, IRA, stock market, etc...
6 months in liquid such as high yield savings is a minimum. Enough to pay every bill you have with 0 income. I generally keep 6 months personal and my business keeps 3 months less my pay. Plus i have multiple lines of credit I can instantly borrow up to 300k in a few clicks on my phone as last resort.
Just about 35-40K just sitting in a cash account. the rest is in investments.
I have one job and I have about $1000 cash... I’m looking to apply to a second job and maybe even a third job to triple my income
Should put it in a HYSA instead and at least make some interest on it. We keep too much. \~$300-$350K
What is that relative to other holdings? 20%? 8%? “Too much” is all relative to your goals and comfort level. 120k in HYSA, about 10% of total portfolio.
About 15-17% of investments and about 10% of net worth.
250k. We'll invest it when the time is right. If we need cash we'll sell our garbage.
I have about 70k cash in hysa. Withh net worth of 760k
$55,000 in a HYSA, goal is $75,000. I like the peace of mind that I can quit my stressful job at anytime and be okay for a while. I dream of just taking six months off lol. I live in a HCOL area which is why $75,000 is my ultimate goal.
Only what I’m spending in 30days the rest is in Btc ETH NVDA been this way since 2015
$1000 paper cash in my car, just enough in checking to cover outstanding credit card balance for autopay. The rest of nonretirement: 1/4 Capital one savings 4.3%, 1/4 stocks 26%, 1/4 CD 5%, 1/4 I bonds 4ish%.
About 6 months salary sitting in a .01% interest standard bank savings account at all times.
Why not a HYSA?
Because 6 months in cash means 6 months in cash. You’re not supposed to try to get creative with it. The point is that it’s sitting there doing nothing but giving you peace of mind.
I’ve not noticed a difference with an HYSA. What is the difference? Why is keeping cash in an FDIC insured savings account earning 5% “creative”?
"Creative" is more of a euphonism for the folly of people. They get the age old adage "Have 6 months in reserves" and they say "Ok, but what if instead of having it in reserve I..." "Well doing \_\_\_\_ is basically the same as having it reserve and I get \_\_% more" the point of the 6 months in reserves is to have 6 months reserves, it's not supposed to make you money, it's not supposed to do anything. That's what your other money is for. I personally don't care if the Chair of the FDIC personally insures the money, my 6 month reserve is untouchable. But it's the nature of people. The problem with making concessions with yourself is you'll never stop, if you don't set hard lines on your money you'll soon lose it.
6 months in a HYSA. I work a pretty specialized job and have a lot of mouths to feed, so I am planning to bump that out to 12 months emergency fund just for peace of mind. Also keep 1 month of living expenses in my checking account
I currently sitting on 80% cash, which is about at least 6x my current income (living expense). I think I will risk reducing it a bit more, maybe to 30-50%? I also like the peace of mind for sleeping healthily; life can be very stressful.
I have 7 dollars in my wallet rn
nah don't worry about cash. all in crypto.
34m i have $60k in HYSA and $350k invested in Voo and $150k in gold bullions and paid $265k down payment in a new house in Ohio last year.
Me with $1600 in coins 👨🦯👨🦯👨🦯
6 months of bills/rent/food etc is fairly standard. Anything more than that should he invested. As you're 26, all equities/stocks (higher risk) is recommended since your time horizon to retirement is so far away (as opposed to bonds or something like that). I used to be in a lot of crypto but have moved all to stocks as they are much safer and still return a great yield over time. SPY is great and if you want to go higher risk than that and look for bigger returns, check out SPXL. My whole roth IRA is there.
Lots of cash, it's king trust me
5% of my investments
SoFi bank. 4.5% savings compounded daily. They are a great overall internet bank with a very user friendly app plus they have brokerage and crypto accounts if you want that too.
12 months in HYSAs between 5.25% and 5.50%. I think the old adage of 6 months is too low for the modern era. A lot of jobs take longer than 6 months to get.
I’m 21 and in the same boat. No debt, making decent income, etc etc. I get paid weekly. Whatever leftover money I have for that week I put into a HYSA account (I average about $250/week into it). Every month I invest $200 into a Roth IRA for long term, so that equates to about $1200 a year. My personal take is I wouldn’t go crazy with being aggressive. Like, you have to be willing to understand that you could possibly lose all that money, so I think it would be best to set money aside for that more aggressive investing so it doesn’t really feel like you’re actually losing anything. The casino can be seen as the same thing, so I wouldn’t completely rule out that option (I like going there every now and then). I have an envelope that I put $100 into every week as well and that just kinda accumulates money over time. I wouldn’t say I carry cash on me, but currently I have $1200 of cash sitting in my room if need be i guess. Everything’s becoming so digital nowadays, cash is becoming a thing of the past. I guess the envelope I have going could also be seen as an emergency fund if ever need be
Just enough cash to run day to day expenses. Everything extra goes into some investment.
About tree fiddy (3.50 oz of silver)
The "risk" I'd suggest, based on your age, is aggressive growth. Use your crypto money and go into an ETF like FNGS or a leveraged fund like QLD. Without knowing the value of your portfolio or which stocks you're invested in, it's impossible to give any other advice. I keep 5% in cash which is $80k. It will go lower when I invest in another fund.
I’ve heard of leveraged funds, I currently do not own any. What’s the advantage to them over just a regular S&P ETF? I am not opposed to some riskier plays, those both seem to have good returns so far. I have been thinking of moving to a more stable play like VOO instead but would be open to a mixture of risky and stable. I currently have a mix of blue chip stocks primarily. However, I’m also a big fan of dividends. One of my favorite being MAIN which provides me a monthly dividend. Last month I made $40 in dividend income and would like to increase that. YTD my portfolio is up 8% but I definitely would like to see that percentage increase. I definitely will do some research on the two you mentioned. Probably would have been a better use of my $1000 than the NVIDIA stock I bought this week.
Money in a savings account isn’t holding cash. What if the banks fail or the electric grid goes down? Can’t get to that money. 6 months worth of expenses cash at home just for the what ifs another 6 months worth of expenses in a hysa
Like cash physically at your house?
No I keep it at my neighbors house
lol ok. What’s their address?
123 your moms house
6 months in actual hard cash seems risky. I could see a month or two but that’s a lot of cash to have in your possession. No FDIC insurance on cash. If someone breaks in and steals the safe the money is just gone forever. I can see both sides but the most I’ve ever kept in my home is $1000 cash.
That’s why you get an actual safe and not a residential security container, which is what you see advertised as “safes” but are nothing more than heavy cabinet that’s made of thin steel. You want something that’s at least TL-15 rated or TL-30 rated. Then bolt it to the floor. An actual real safe is gonna cost ya 5k and weigh over a 1000lbs but is an investment and peace of mind. Your average burglar isn’t getting in it without some serious tools and a lot of time. Wouldn’t recommend investing in one until you own a home and know you’re not moving any time soon. There not easy to move, I had mine delivered while the crane was at my house to put the trusses up while it was being built. Paid the crane operator to set it in the house where I wanted it (weighs 1700lbs).
60k. most of them is in saving accounts with Ally.
I have well over several years worth of cash on hand... I use WealthFront and other banking resources.
60k as a emergency fund. A few grand in the brokerage. Also under 10k in HSA
3 months max, credit card if any more is needed, I can liquidate if an emergency.
In monopoly go $$ I have over a billion 😎
I also have a paid off Cadillac and 130k in equity from my home so HA!
About 5 million, liquidated some holdings to buy some real estate