Cash Liquidity

[ASAP]

Originally Posted by dmk08

Oh I know. I know guys who make 90k a year and drive an M3 with no savings. Living in a true house of cards. I guess I just hope most are smarter than that but reading statistics on our society probably not.

I know a guy that makes 90k and has over 100k in savings... it really comes down to how people budget and spend.

[dmk08]

Originally Posted by ASAP

I know a guy that makes 90k and has over 100k in savings... it really comes down to how people budget and spend.

Agreed but if he was buying 80k bmws with that cash and/or making $1200/month car payments it would have been much harder for him to save 100k. Age matters too obviously.

Kudos to him. I wish more people were in that position.

[ASAP]

Originally Posted by dmk08

Agreed but if he was buying 80k bmws with that cash and/or making $1200/month car payments it would have been much harder for him to save 100k.

Kudos to him. I wish more people were in that position.

this is not a typical scenario and I don't think its very realistic for 99% of people... the guy was just a shrewd saver in the right places... always drove a decent car; traveler and had money...he is the real mvp

People that solely rely on cash flow are the first to get themselves in trouble...

[ASAP]

Curious if anyone has changed their strategy in the tail end of the market high...

[XutvJet]

We've got over 6 figures that I can have in our bank account within 1 day. The money is to cover 1) 6-9+ months expenses and 2) is our "war chest" in the event of a strong market downturn and I can buy some solid stocks on the cheap.

[kscarrol]

Yes, cash balances are higher though I remain heavily invested in the market...

[ASAP]

Honestly still surprised at the high amount of 100k+ cash savers here... I am in the same group but I don't consider myself typical (saver in the right places)... very interesting to be honest.

[kscarrol]

I'm easily in that category as well... Again, it's the internet where everyone has a 9+ inch d*ck. But re-reading some of the responses there were clearly responders who talked about having that kind cash in one day if needed. I think some may have included themselves in that category skewing the results.

[AlpineWhite_SJ]

Originally Posted by kscarrol

I'm easily in that category as well... Again, it's the internet where everyone has a 9+ inch d*ck. But re-reading some of the responses there were clearly responders who talked about having that kind cash in one day if needed. I think some may have included themselves in that category skewing the results.

The poll literally said cash on hand or cash you could have tomorrow. Something like a money market would count in that definition.

[ASAP]

Originally Posted by AlpineWhite_SJ

The poll literally said cash on hand or cash you could have tomorrow. Something like a money market would count in that definition.

A MM savings account sure as that is effectively cash as is any savings account... thats where a lot of my money is as well. I don't mean like cash under the mattress lol...

A MM fund would not qualify... nor would 401k, nor would real estate, nor would a general stock market / vanguard share account...

[kscarrol]

Originally Posted by AlpineWhite_SJ

The poll literally said cash on hand or cash you could have tomorrow. Something like a money market would count in that definition.

Right but there is a difference between equites and cash/MM fund. Saying you have $100k in "cash" (sell to raise cash) which is really the value of equities that can be sold is not the point of the poll and a number folks responded that they could "sell" to have that $100k tomorrow. That is my point.

[corn18]

Does margin count?

[kscarrol]

Originally Posted by corn18

Does margin count?

Sure, a dollar is a dollar right?

[floridaorange]

Originally Posted by ASAP

Honestly still surprised at the high amount of 100k+ cash savers here... I am in the same group but I don't consider myself typical (saver in the right places)... very interesting to be honest.

Originally Posted by ASAP

Honestly still surprised at the high amount of 100k+ cash savers here... I am in the same group but I don't consider myself typical (saver in the right places)... very interesting to be honest.

I thought the same, and I'm not yet in the 6 figure savings group yet but on the way.

[AlpineWhite_SJ]

Originally Posted by kscarrol

Right but there is a difference between equites and cash/MM fund. Saying you have $100k in "cash" (sell to raise cash) which is really the value of equities that can be sold is not the point of the poll and a number folks responded that they could "sell" to have that $100k tomorrow. That is my point.

Agreed, but I think some were also including cash-like instruments which was in the spirit of the poll. Personally, have the cash to meet the threshold but the "+" would be from money market. Equities are just extra on top.

[kscarrol]

Originally Posted by AlpineWhite_SJ

Agreed, but I think some were also including cash-like instruments which was in the spirit of the poll. Personally, have the cash to meet the threshold but the "+" would be from money market. Equities are just extra on top.

Agreed.

[Run Silent]

I don't mind sharing - as one of my major goals in life is to encourage more people to be responsible with their money.

Total expenses for 6mos: $26,238
Total liquid assets: $189,567

Breakdown:

Expenses:

HOA Dues: 25
Water, Sewer, Trash: 100
Natural Gas/Propane: 20
Cell phones (x2): 152
Internet: 75
Electricity: 146
ADT Security: 35
Property Taxes: 206
Groceries: 889
Pet Care: 70
Preschool - Childcare: 1,125
Restaurants: 325
Misc.: 304
TV Streaming Services: 55
Gas and personal expenditures: 600
Wine: 40
Budget Software: 11
Amazon Prime: 13
Home & Auto Insurance: 142
Flood Insurance: 40

Total per Month: 4,373
Total for 6 months: 26,238

Liquid Assets:

Cap-1 High Yield Online Savings Account 1: 12,267
Cap-1 High Yield Online Savings Account 2: 2,266
Cap-1 High Yield Online Savings Account 3: 4,533
Bank Account - Checking 1: 7,441
Bank Account - Checking 2: 14,573
Money Market Account 1: 23,142
Money Market Account 2: 12,720
Investment Account 1: 70,327
Investment Account 2: 5,756
Investment Account 3: 36,542

Total: 189,567

[Joekerr]

Originally Posted by Run Silent

I don't mind sharing - as one of my major goals in life is to encourage more people to be responsible with their money.

Total expenses for 6mos: $26,238
Total liquid assets: $189,567

Breakdown:

Expenses:

HOA Dues: 25
Water, Sewer, Trash: 100
Natural Gas/Propane: 20
Cell phones (x2): 152
Internet: 75
Electricity: 146
ADT Security: 35
Property Taxes: 206
Groceries: 889
Pet Care: 70
Preschool - Childcare: 1,125
Restaurants: 325
Misc.: 304
TV Streaming Services: 55
Gas and personal expenditures: 600
Wine: 40
Budget Software: 11
Amazon Prime: 13
Home & Auto Insurance: 142
Flood Insurance: 40

Total per Month: 4,373
Total for 6 months: 26,238

Liquid Assets:

Cap-1 High Yield Online Savings Account 1: 12,267
Cap-1 High Yield Online Savings Account 2: 2,266
Cap-1 High Yield Online Savings Account 3: 4,533
Bank Account - Checking 1: 7,441
Bank Account - Checking 2: 14,573
Money Market Account 1: 23,142
Money Market Account 2: 12,720
Investment Account 1: 70,327
Investment Account 2: 5,756
Investment Account 3: 36,542

Total: 189,567

You live frugally, much better than I. I still have a mortgage payment and car lease. And not as much saved up either. And the mortgage is going on for 20 more years. Going to be close to sixty by the time it is paid off. Though I have been running scenarios with a 15 year amortization as well as doing lump sum payments to shorten the period.

[Run Silent]

Originally Posted by Joekerr

You live frugally, much better than I. I still have a mortgage payment and car lease. And not as much saved up either. And the mortgage is going on for 20 more years. Going to be close to sixty by the time it is paid off. Though I have been running scenarios with a 15 year amortization as well as doing lump sum payments to shorten the period.

Well - three things:

1) I don't have any debt, so no mortgage or car payments.

2) Those are my minimum monthly expenditures to live on. Typically, our monthly budget includes quite a few other items, but they are discretionary, and as such, not typically included in an expense total when calculating minimum savings requirements for an emergency fund.

3) You should minimize whatever you can in order to pay off your house. Mortgage interest is astronomical as it comes to both debt expense and lost opportunity cost. In addition, I've never hear of anyone getting a house foreclosed on that didn't have a mortgage on it. That peace of mind works wonders for quality of life. When you have no debt, and everything you have is owned by you, working is much less stressful.

[Joekerr]

Originally Posted by Run Silent

Well - three things:

1) I don't have any debt, so no mortgage or car payments.

2) Those are my minimum monthly expenditures to live on. Typically, our monthly budget includes quite a few other items, but they are discretionary, and as such, not typically included in an expense total when calculating minimum savings requirements for an emergency fund.

3) You should minimize whatever you can in order to pay off your house. Mortgage interest is astronomical as it comes to both debt expense and lost opportunity cost. In addition, I've never hear of anyone getting a house foreclosed on that didn't have a mortgage on it. That peace of mind works wonders for quality of life. When you have no debt, and everything you have is owned by you, working is much less stressful.

Mortgage interest is definitely astronomical when you look at the figure on its own. However, I also look at things like the increase in equity (which happens regardless of whether the mortgage is in play or not, but certain areas appreciate faster, and those typically require a mortgage to buy into) and the overall interest rate on the mortgage in comparison to what my dollars are earning in investments after tax.

Interest rates here (and I'd imagine in the States) are ridiculously low. I'm looking to renew for a 5 year term, fixed rate at 2.79%. And the last 5 years I was paying 2.89%. That's really low.

Also, with respect to equity, I could have bought in various areas around me where I would have the house paid off by now. But, those same areas have appreciated very slowly given the quality of the surrounding houses / neighbourhood. I would estimate that 5 years later, houses in those areas have appreciated by maybe $75K. And that is probably being generous.

Whereas my home has easily appreciated by $370K over those same five years. So was my mortgage worth it over all...I'd say yes.

[Rmtt]

Originally Posted by Run Silent

Well - three things:

1) I don't have any debt, so no mortgage or car payments.

2) Those are my minimum monthly expenditures to live on. Typically, our monthly budget includes quite a few other items, but they are discretionary, and as such, not typically included in an expense total when calculating minimum savings requirements for an emergency fund.

3) You should minimize whatever you can in order to pay off your house. Mortgage interest is astronomical as it comes to both debt expense and lost opportunity cost. In addition, I've never hear of anyone getting a house foreclosed on that didn't have a mortgage on it. That peace of mind works wonders for quality of life. When you have no debt, and everything you have is owned by you, working is much less stressful.

Same here. No debt and we only have a few things we like to indulge on.....but only if it makes sense. If I feel the first bit uneasy about a purchase, I typically don't make it.

But I'm probably a little overboard with my OCD about debt. The way I grew up impacted me pretty good, and I never want to be in that situation. It wasn't like my dad (one earner family) didn't make decent money, but very poor spending habits.

I have our retirement contributions maxed out, and a pretty significant savings account balance. I was lucky and started out when 401K was first offered with most employer's matching at least 5% of what you put in. That was 20+ years ago. Any move to a different company....I either was able to move my retirement into the new program, or I had to move them into IRAs.

I've watched my brother do the same thing, but cash his policy out and incur all the taxes and penalties.

I just can't fathom how he thinks like he does.

[Run Silent]

Originally Posted by Rmtt

Same here. No debt and we only have a few things we like to indulge on.....but only if it makes sense. If I feel the first bit uneasy about a purchase, I typically don't make it.

But I'm probably a little overboard with my OCD about debt. The way I grew up impacted me pretty good, and I never want to be in that situation. It wasn't like my dad (one earner family) didn't make decent money, but very poor spending habits.

I have our retirement contributions maxed out, and a pretty significant savings account balance. I was lucky and started out when 401K was first offered with most employer's matching at least 5% of what you put in. That was 20+ years ago. Any move to a different company....I either was able to move my retirement into the new program, or I had to move them into IRAs.

I've watched my brother do the same thing, but cash his policy out and incur all the taxes and penalties.

I just can't fathom how he thinks like he does.

Funny how living below your means, paying yourself first in the form of appropriate savings plans, and investing wisely and for the long term seems to work out so well, isn't it? Almost like we made a plan for our money, isn't it?



Boring when it comes to finances isn't a bad thing.

But of course what would you and I know? Besides, I'm just a cheap accountant who bought himself a Ferrari for cash at age 42.



Rock on, man!


What was it that Dave Ramsey always used to say? Live for a while like no one else does, and later - you can live like no one else does? Something like that.

I also like "Don't be normal, normal people are broke."