62% of Americans have less than $1000 in savings

[Bubba T]

Wouldn't it be be better to have a larger liquid rainy day fund so you keep the momentum of your stocks/funds? I'm just curious cause I know some funds penalize you for taking money out early

Savings accounts don’t pay anything. In fact, you are losing money when you consider inflation.

Emergencies are just that - emergencies. They don’t happen often if at all. It’s better to have some liquid funds and more in investments than the other way around.

 

[phcitywarrior]

Savings really should be seen as "self insurance" for when stuff hits the fan.

My old boss had so much saved up that when he got let go he didn't even fight it. Just asked for his severance and bounced. Dude lived his life without working for almost a year like it was nothing.

 

[Wild self]

This. When/If I see my shyt dip into $4,XXX I get antsy and start working OT. Honestly $10K is chill mode.

10k?

If I dip anywhere below 100k, I'm shook. Really, really shook. I don't flash my money, but the fact that people prior to 2008 had decent savings (over 40k) to the crisis we face now, the standard of living has dropped while the cost of living has doubled.

We need a revolution that takes the corporations accountable for their greed. That's the only way.

 

[phcitywarrior]

Savings accounts don’t pay anything. In fact, you are losing money when you consider inflation.

Emergencies are just that - emergencies. They don’t happen often if at all. It’s better to have some liquid funds and more in investments than the other way around.

I guess I look at savings differently. I don't look at it as something to earn interest. It's just there in case an emergency comes around and I need cash NOW.

Example: Last year I wrecked my car and still needed to go to work. I had a couple thousand in a savings account that I used to pay the bill (~$750). If I didn't have the cash I'd either have to withdraw from my companies 401k or charge it to my CC (which would earn interest). It was easier to pay cash and have the emergency end there.

Most savings accounts are like 2%. Even if inflation is 3-4% a year the difference is marginal when compared to the interest of "emergency debt" you may incur by putting something on your CC or early withdrawal penalties.

 

[Absolut]

I guess I look at savings differently. I don't look at it as something to earn interest. It's just there in case an emergency comes around and I need cash NOW.

Example: Last year I wrecked my car and still needed to go to work. I had a couple thousand in a savings account that I used to pay the bill (~$750). If I didn't have the cash I'd either have to withdraw from my companies 401k or charge it to my CC (which would earn interest). It was easier to pay cash and have the emergency end there.

Most savings accounts are like 2%. Even if inflation is 3-4% a year the difference is marginal when compared to the interest of "emergency debt" you may incur by putting something on your CC or early withdrawal penalties.

what average savings account is 2%

 

[phcitywarrior]

what savings account is 2%

Ally Bank

 

[Absolut]

Ally Bank

The average savings account ain’t even a percent

 

[606onit]

10k?

If I dip anywhere below 100k, I'm shook. Really, really shook.

I been slacking, g.

 

[the cac mamba]

what average savings account is 2%

every online bank is doing 2% now. i keep most of my savings in there, and leave 5 or 10 grand in bank of america checking to get to if i need it that day

american express online savings is where its at. same FDIC as any regular bank

 

[ahomeplateslugger]

i agree with @MarkusWolff on this. i've only made one deposit into my savings since opening it and haven't put a penny since. i feel like 1.8% with my credit union is good but my ETF has been giving me around 12% since opening it and if i have some outstanding emergency i can't cover with my savings then i can always withdraw from my ETF or sell some stocks. i haven't had to touch my savings yet so i just don't think putting money into it is worth it right now.

 

[Uptown WaYo87]

Con ed?

Thats the main gas n light provider in new york

 

[winb83]

10k?

If I dip anywhere below 100k, I'm shook. Really, really shook. I don't flash my money, but the fact that people prior to 2008 had decent savings (over 40k) to the crisis we face now, the standard of living has dropped while the cost of living has doubled.

We need a revolution that takes the corporations accountable for their greed. That's the only way.

Who keeps $100K in liquid savings? What emergency would you ever have to need anything close to that? Once you get past $20K it’s time to invest or something cause you could be doing better things with that money. In liquid it’s losing money.

 

[Wild self]

Who keeps $100K in liquid savings? What emergency would you ever have to need anything close to that? Once you get past $20K it’s time to invest or something cause you could be doing better things with that money. In liquid it’s losing money.

I do, and especially in these times, people losing mad money in the stock market. I rather invest in real estate when the economy is in the tank.

 

[winb83]

I do, and especially in these times, people losing mad money in the stock market. I rather invest in real estate when the economy is in the tank.

You keep that sort of money invested in tride and true companies that won’t go belly up. Even if the market dips for a time companies like say Microsoft will be around long term and that investment will recover. S&P 500 index funds and shyt.

 

[Wild self]

You keep that sort of money invested in tride and true companies that won’t go belly up. Even if the market dips for a time companies like say Microsoft will be around long term and that investment will recover. S&P 500 index funds and shyt.

Even so, is it worth the heartache? I rather keep it in an IRA account than go through the roller-coaster of that sort.