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Posted: 9/30/2014 5:57:47 AM EDT
I know I am stupid for just letting it sit in a savings account, but am I stupid for not enjoying it?
I live well below my means, in fact, I get called cheap and tight all the time.
About the only thing I spend any money on is decent food, alchohol, and a gun or ammo every once in a while.
However, I do not live very comfortably.
I don't have the latest and greatest gadjit, and if you seen my home, you would think I am poor.
Link Posted: 9/30/2014 6:12:07 AM EDT
[#1]
Let's see: If you have enough money to fix your next emergency (car break down, or a dental/medical emergency for example) and you spend the money in your savings account... you don't owe any money to anyone. If you don't have the money and have to use credit, you'll spend a year or more getting back to "normal."

Credit is money you don't have-- YET. It'll come out of your future earnings, probably at a time when it's difficult to pay back and you need the money for other things.

Keep the money. save it for emergencies.
Link Posted: 9/30/2014 2:19:15 PM EDT
[#2]
Quoted:
I know I am stupid for just letting it sit in a savings account, but am I stupid for not enjoying it?
I live well below my means, in fact, I get called cheap and tight all the time.
About the only thing I spend any money on is decent food, alchohol, and a gun or ammo every once in a while.
However, I do not live very comfortably.
I don't have the latest and greatest gadjit, and if you seen my home, you would think I am poor.
View Quote


In my opinion if you have an emergency fund and are saving/investing for retirement and don't have any debt, the next thing to do is enjoy the money you have RIGHT NOW.  What's the point in living if you are throwing all your money in the bank and causing yourself to suffer?
Link Posted: 9/30/2014 2:22:11 PM EDT
[#3]
Pay off your debts, save and invest 3 months of pay as an emergency fund, and then start to enjoy things.
Link Posted: 9/30/2014 2:47:42 PM EDT
[#4]
How much money are we talking about?

If it's more than $30,000 it should at least be getting 4%

If it's more than a couple hundred k, then yeah it's stupid.

Link Posted: 9/30/2014 3:19:06 PM EDT
[#5]
Well, you could be frivilous and buy a membership.  
Link Posted: 9/30/2014 4:21:28 PM EDT
[#6]
Do what others have said. Take care of the smart financials first (contribute to retirement, pay off debt, build an emergency fund, invest a little to have fun) and the rest do what makes you happy...

For me, the thing that will really make myself and my wife happy is buying a significant piece of property and building our dream home. So we are both working diligently to that end. We are packing away money and sitting on it because we know that we will get a great deal of happiness from what that money can buy some-day and we're willing to make those sacrifices today. That being said, we do spend a little on ourselves here and there...
Link Posted: 9/30/2014 7:20:41 PM EDT
[#7]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
How much money are we talking about?

If it's more than $30,000 it should at least be getting 4%

If it's more than a couple hundred k, then yeah it's stupid.

View Quote

Yes, it is more than $30,000.
I think it made less than $100 in interest last year, it may be drawing .02% or so.
I've not really checked into putting the money somewhere else, so what is the best option?
Link Posted: 9/30/2014 8:43:24 PM EDT
[#8]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Yes, it is more than $30,000.
I think it made less than $100 in interest last year, it may be drawing .02% or so.
I've not really checked into putting the money somewhere else, so what is the best option?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
How much money are we talking about?

If it's more than $30,000 it should at least be getting 4%

If it's more than a couple hundred k, then yeah it's stupid.


Yes, it is more than $30,000.
I think it made less than $100 in interest last year, it may be drawing .02% or so.
I've not really checked into putting the money somewhere else, so what is the best option?


Roth IRA, max it out every year, as for the rest you'll want to keep some cash on hand for liquidity, but outside of that make sure you are using your tax incentive outlets first.  Increase your 401k contribution until you max out, if you have an HSA, max that out.  You can use your cash reserves to supplement that if you need to.  Outside of that, you'll want to open a brokerage account and start putting money into index ad no load mutual funds and let it ride.
Link Posted: 9/30/2014 9:44:30 PM EDT
[#9]
Here's my thoughts.

You should have enough stashed away that something bad could happen and financially you'd still be fine.  This kind of savings eliminates stress and that peace of mind is worth more than any material object.

Then saving for something specific such as a home, retirement, kid's college fund, buying a business, etc. is also a perfectly good reason to be saving money and living well below your means to do it.

For me, those are the reasons to save money.  There's not point in having it just to have it after a certain point imo.  Having money is good for allowing you to more fully experience life so that's what I intend on using it for.

Link Posted: 9/30/2014 10:30:10 PM EDT
[#10]
http://www.usatoday.com/story/money/personalfinance/2014/06/23/americans-emergency-savings/11085869/ Hope that helps your decision. Good luck!
Link Posted: 10/1/2014 1:58:55 AM EDT
[#11]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


In my opinion if you have an emergency fund and are saving/investing for retirement and don't have any debt, the next thing to do is enjoy the money you have RIGHT NOW.  What's the point in living if you are throwing all your money in the bank and causing yourself to suffer?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
I know I am stupid for just letting it sit in a savings account, but am I stupid for not enjoying it?
I live well below my means, in fact, I get called cheap and tight all the time.
About the only thing I spend any money on is decent food, alchohol, and a gun or ammo every once in a while.
However, I do not live very comfortably.
I don't have the latest and greatest gadjit, and if you seen my home, you would think I am poor.


In my opinion if you have an emergency fund and are saving/investing for retirement and don't have any debt, the next thing to do is enjoy the money you have RIGHT NOW.  What's the point in living if you are throwing all your money in the bank and causing yourself to suffer?

That's the key right there. IF you have an EF, and other financial priorities are settled.... enjoy! BTW if you need someone to carry your bags when you go to Cancun, I'm available.
Link Posted: 10/3/2014 10:33:19 AM EDT
[#12]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Yes, it is more than $30,000.
I think it made less than $100 in interest last year, it may be drawing .02% or so.
I've not really checked into putting the money somewhere else, so what is the best option?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
How much money are we talking about?

If it's more than $30,000 it should at least be getting 4%

If it's more than a couple hundred k, then yeah it's stupid.


Yes, it is more than $30,000.
I think it made less than $100 in interest last year, it may be drawing .02% or so.
I've not really checked into putting the money somewhere else, so what is the best option?

At a bare minimum immediately move the funds to a savings account that pays better interest, Ally Bank is currently paying 0.90%.  After it's there, you can start researching more.  If you don't anticipate needing the funds anytime soon then maybe put some in to a 5 year CD (hint:  break it up in to a lot of smaller CDs, Ally again is among the better paying and has no minimum for their best rate.  By breaking it up if you have to access some of the money you don't have to disrupt all of it).  If you aren't maxing out contributions to an IRA or 401k you should do so, then supplement from the savings for any shortfall.  Tax sheltered retirement accounts are among the best deals out there.

Basic questions to give any more detail:  what's the time horizon?  What's the intended purpose of this money?  How is your retirement savings (and what's your age?)?
Link Posted: 10/4/2014 8:02:10 PM EDT
[#13]
When they say 3-6 month emergency fund in cash, do they mean to pay all bills  - mortgage, etc?
Link Posted: 10/5/2014 12:35:33 AM EDT
[#14]
You're not stupid to save money. It's how you save it that is important. If are saving for the short term, i.e to buy something, then save cash. If you're going to save money for years then inflation will causer you to lose money. My mid and long term savings are invested in the stock market. I prefer stable companies that pay healthy dividends and are considered dividend champions. I also own shinny stuff but no more than 10% of my portfolio value. My current yield on cost for my retirement is almost 4%.
Link Posted: 10/5/2014 12:37:01 AM EDT
[#15]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
When they say 3-6 month emergency fund in cash, do they mean to pay all bills  - mortgage, etc?
View Quote

That's what i consider. But i also take into consideration unemployment.
Link Posted: 10/5/2014 8:51:50 AM EDT
[#16]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

That's what i consider. But i also take into consideration unemployment.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
When they say 3-6 month emergency fund in cash, do they mean to pay all bills  - mortgage, etc?

That's what i consider. But i also take into consideration unemployment.


It's usually meant as 3-6 months of (take-home) income.  But obviously, if your take home is $50,000 but your monthly expenses are $2,000 per month, you probably should go with (at least) 3-6 months of expenses.
Link Posted: 10/5/2014 1:40:57 PM EDT
[#17]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


It's usually meant as 3-6 months of (take-home) income.  But obviously, if your take home is $50,000 but your monthly expenses are $2,000 per month, you probably should go with (at least) 3-6 months of expenses.
View Quote View All Quotes
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
When they say 3-6 month emergency fund in cash, do they mean to pay all bills  - mortgage, etc?

That's what i consider. But i also take into consideration unemployment.


It's usually meant as 3-6 months of (take-home) income.  But obviously, if your take home is $50,000 but your monthly expenses are $2,000 per month, you probably should go with (at least) 3-6 months of expenses.

If i made 600k a year, i would save enough to make sure i never need ed to work again after 3 years.
pay off the house,all debt.
1 million invested in dividend growth stocks
My yearly expenses are~24k. I can easily get a 3% yield.
Dividend growth will take care of inflation.
This doesn't matter because i probably won't make 600k a year ever.
Link Posted: 10/16/2014 9:31:21 AM EDT
[#18]
Tis good to save.  How you save matters.  Your savings are being destroyed by quantitative easing and inflation.  Are you really saving or are you watching your earnings depreciate by the malfeasance of the Fed. Res?
Link Posted: 10/19/2014 11:55:31 AM EDT
[#19]
Yes you are. It is selfish for the capitalist pigs to save while the proletariat struggles to buy their iphones, Cadillac and gold rims.



Stop being selfish and blow it all away you capitalist swine.
Link Posted: 10/25/2014 12:56:29 AM EDT
[#20]
I like the Vanguard Total Bond Market Fund (BND).
Link Posted: 10/26/2014 12:00:06 PM EDT
[#21]
Quoted:
I know I am stupid for just letting it sit in a savings account.
View Quote


you have traded one type of risk for another.

http://en.wikipedia.org/wiki/Asset_allocation

http://www.amazon.com/About-Asset-Allocation-Second-Edition/dp/0071700781

ar-jedi

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