Mike Nasty
Veteran
OP cosplaying as being broke for daps
Why bother having an emergency fund at all?
- Thread starter winb83
- Start date
The stock market has done about a 5x since this thread was created.
Anybody who insisted you not have savings/emergency fund in the S&P 500 did you disservice and actually costed you money OP.
Anybody who insisted you not have savings/emergency fund in the S&P 500 did you disservice and actually costed you money OP.
This thread is from the perspective of someone that doesn't have any major responsibilities, no children, no wife or family to take care of, doesn't own a home. Also such a person has fixed cost that are about 1/3rd of their net pay, 1/3rd is saved and invested and 1/3rd is treated as disposable income. From that perspective it makes sense. I live very far below my means. Some of you have mortgage payments that add up to more than all my fixed cost combined.The stock market has done about a 5x since this thread was created.
Anybody who insisted you not have savings/emergency fund in the S&P 500 did you disservice and actually costed you money OP.
Even now having cash savings if I have an emergency I just charge it to a credit card and cash flow it from my disposable income. If I had a family, owned a home, had responsibilities I'd need to protect those things and an emergency fund would be needed as insurance. As I live it's not really necessary. If I needed to I could cut my entire financial footprint to under $1100 a month and be fine.
The stock market has done about a 5x since this thread was created.
Anybody who insisted you not have savings/emergency fund in the S&P 500 did you disservice and actually costed you money OP.
You can have a little bit of cash on the side and have the rest in the market. Maybe like $7-$10K on the side then the rest in the market.
Each asset serves its purpose IMO
$7000-$10000 cash just chillin and not growing is crazy to me. Thats not a little bit of cash.
Fair. I just look at it as I always want to have a little bit of liquid cash on me. The money to grow, I’ll leave in the stock market and not touch.
If the cash I have on hand is 2% of my total asset base then it’s small change at the end of the day. But everyone is different.
At least you got it in the market
Breh is right on that growth. Holding your emergency fund in $SPY it closed around $290 a share when this thread was made and closed at $737 yesterday. Up around 154%.
Gemini says $10K in SPY at that time would be worth $25K today and in the typical HYSA would be worth around $11.5K today. An almost 19% return vs 154%.
Gemini says $10K in SPY at that time would be worth $25K today and in the typical HYSA would be worth around $11.5K today. An almost 19% return vs 154%.