Personally have a 3 year emergency fund and I just feel so at peace. My boss has complained that I’m not working fast enough recently, but I really don’t care if I get fired. 3 years is plenty of time to find another job.
@neklimonet4 ай бұрын
you're a legend, now I want it too
@robertwalker55213 ай бұрын
When you go out there to find a new job, the reason why you were fired CAN be Discovered Becoming lazy and obstinate on your current job sounds like "shooting yourself in the foot".
@kitnoCC7 ай бұрын
I agree! The peace of mind is by far the best part of having cash. "If it costs you your peace, it's too expensive"
@filmaker2567 ай бұрын
absolutely
@raiden0317 ай бұрын
Too much cash gives me anxiety thinking about the opportunity cost of not investing enough
@johnmaddern35192 жыл бұрын
I believe in keeping a large cash emergency fund, I bought my cottage and car with cash and it gave me large discounts on both
@twotokes1734 Жыл бұрын
Other reasons why cash is king. kzbin.info/www/bejne/pZjdh6uBm7mgarM
@artistjjebsen7 ай бұрын
Great advice. So many ‘experts’ preach the opposite. Accessible cash is comforting. Money doesn’t always have to work for you. It can be a nice warm security blanket.
@ninajohnson6578 Жыл бұрын
After saving for years I just had a crumbling dangerous shower redone. When we opened the walls black mold was everywhere. The project doubled. I had more than enough cash to get mold mitigation, complete rebuild and the shower redone safely. Cash has always been Queen for me😉
@standartne7 ай бұрын
I fully agree with you guys! I also kept a significant amount of cash on my account when I sold my property and the inflation during Covid years made me very nervous. But in a long term, it allowed me to buy another property that was rare to find on the market and now it allowed me to stay at home when I lost a job and to invest the time in a family and self-development while keeping my sleep calm.
@nicpollifrone8634 Жыл бұрын
Completely agree… on all points! With the rising rates, we savers are finally benefiting a bit with high yield savings accounts at 3-4%. It’s an added bonus to the security.
@warrenlowe67611 ай бұрын
Still losing it due to inflation though. Use cash on a start business and bet on yourself.
@NatalieG42710 ай бұрын
High yield savings in banks that actually PAY Interest on savings accounts. Chase Bank sent everyone a letter in the regular mail some years back telling all customers that they no longer pay ANY Interest on Savings Accounts. So In other words, they just hold your money for you.
@bonanzatime10 ай бұрын
@@warrenlowe676 No You're Wrong, the average inflation rate over the last hundred years is approximately 3%, so if you're getting more than that then you are beating inflation, or at least keeping up with it in the long run. Short term the inflation has been high recently, but market has also been down, so you're not losing anything by gaining 4-6%.. Investing in start up businesses is very risky and you're more likely to lose it all.
@jmm18177 ай бұрын
@@warrenlowe676< stupid
@northerngamingygo42747 ай бұрын
@bonanzatime the market has been amazing though
@raiden0317 ай бұрын
I disagree on CDs. You divide up and stagger the cds (a ladder) so they mature at different times. I also think young people should invest more to take advantage of time in the market
@GBOAC7 ай бұрын
This. Holding more cash short sighted, investing rewards more over time
@hlub77638 ай бұрын
I totally agree with you. Having more money at my disposal does give me peace of mind. Won't need to borrow from family members or the bank. Hate paying interest to the banks.
@valeria-militiamessalina56727 ай бұрын
Yeah, they are evil, they need to make a living too but their rates are way too high, they are second only to loan sharks.❤
@happylife7542 Жыл бұрын
Omg we have the same experience where my parents stayed with us for 10 years to help with our 2 boys, so my husband and I can save money and reach our career goals. Love that piece of culture. My parents just moved back to the home country, and they said they have started their official retirement. Thanks to both sides of our Chinese parents to help us reach our financial goals too in our late 30s .
@Being_Joe7 ай бұрын
Q1 2024 I have had to spend $5k on vet bills between my two dogs. Having access to cash makes me not even think about it.
@averylewis97497 ай бұрын
Why wouldn’t you put cash into a High Yield Savings Account? 5%+!
@RabianskiT Жыл бұрын
Cash is KING… unless your currency is Turkish Lira 😂 or Argentinian Peso 😂😂 Then you want to GET RID of it before it’s worth LESS than Toilet Paper 🤣
@uf19787 ай бұрын
Im getting 4.45% on my citi savings account. That's where i keep all my liquid cash! After 401k and my HSA all remaining goes to citi savings and with zero debt that can be quite high each Month! Plan on retiring in 3 years at 62. Thanks for sharing and you have a new subscriber!
@jgtdragon Жыл бұрын
Very clear and I totally agree. For me, I need to have cash available because of my rental properties, when repairs come, it comes in handy.
@Dmidnightmachine Жыл бұрын
so many times when the market crashed I wish I had more cash to buy the all time lows lol.
@yannip20832 жыл бұрын
Yes, $Cash is King and peace of mind is priceless. BTW, would you pay down your home mortgage payment too, or keep more and more $Cash?
@stephtraveler73787 ай бұрын
Inflation??? Real inflation, not the filtered crap the gov measures. Pre-plandemic BMW: $36k ----- post-plandemic BMW: $72k Pre-plandemic McDonalds Big Mac meal deal: $3.75 ---- post plandemic: $7.75. Eat at 5 Guys? Better have $20 per person for burger, fries, coke. Cash lost value.... The market recovered and has hit 20+%. Great message on the importance of cash, but you have to have growth also. Equities provide growth.
@taimalik1110 Жыл бұрын
Whoever thinks cash is trash belongs in one! Excellent advice as always, sir!
@dh-uo4lt7 ай бұрын
While the general stock market is up 22% lol
@WrvrUgoThrUR7 ай бұрын
Technically it is physically disgusting and literally filthy. But everyone should have some tucked away.
@mnledesm7 ай бұрын
When I reached 500K in cash I worried that the FDIC only insured 250K of it. So now I have around $1.1 M spread through 3 banks...250K in savings, 250K in CDs and the rest in my regular account. I did worry alot about the bank's stability and that's one of the downsides of having too much cash.
@cocktailhotel7 ай бұрын
Curious . . . What is a "regular" account as opposed to your savings account ? Is it a checking account ?
@qwerty1994ize7 ай бұрын
What do you do for a living?
@jayp41147 ай бұрын
Are you based out of Nigeria ?
@11Bravo847 ай бұрын
@@jayp4114😂
@thomaschew21919 ай бұрын
I try to think of our cash savings as part of our overall portfolio. We lose a little bit of return in exchange for liquidity. And although our cash is in a high interest savings account and certainly "liquid" it takes about 6 days for a transfer so that gives a time buffer to think through things. We also keep a checkbook buffer of one and a half months expenses at our fingertips and for the last 7 years that has allowed us to avoid pulling from our emergency fund or going into debt.
@jeanmarchockeypro Жыл бұрын
This guy is smart. Great content.
@kinerskorner1 Жыл бұрын
Good information!
@lailaatallah185711 ай бұрын
Tae, I love your take on this. I’ve especially never thought about cash buying me time and the ability to take the time to reflect, research, confer and make reasoned decisions.
@robloxvids22337 ай бұрын
I think this depends on how much you make. If you make a very high income it's fine to stash 6-12 months in cash. But for most people it would take too long to save that. They really need to get going on 401/Roth/HSA with 3-6 months' savings. Or they'll never get beyond just the 401k match.
@LsxDean Жыл бұрын
having cash on hand means you can buy something sweet without missing out on a low price . Opportunity costs matter just as much :)
@pistopitpit10 ай бұрын
This is a fudge description of market timing. Good luck with this one.
@lukas______7 ай бұрын
Too much cash on hand = above average liability for being stolen AND if you use it, you have to deal with lame coins Too much in the bank = market crash you might be effed
@herculesrockefeller89697 ай бұрын
I also keep $137 Billion in cash Unfortunately, I forgot where I keep it! 😀
@M_SC7 ай бұрын
What really would have stabilized a shaky market would have been regulations that ensured Goldman sacks hadn’t committed so many financial crimes in the first place. Shame on Berkshire Hathaway
@SuperShekky7 ай бұрын
Good now i know who to rob lmao
@ccw39 Жыл бұрын
Great points! Esp about potential parental care!
@TB7-X8 ай бұрын
Keep your liquid cash in a high yield savings account.
@InChristAlone3057 ай бұрын
That’s where I keep mine. For my emergency fund.
@robertwalker55213 ай бұрын
@@InChristAlone305 An "emergency" can mean that any and all forms of communications with that facility (bank, credit union, etc cetera) are Down...no possible communication
@helloharry14182 жыл бұрын
Awesome 👌👍 thank you Tae
@Mo-ou9yt Жыл бұрын
Honest Guy
@wendyshoowaiching41617 ай бұрын
To boost your feel good day, just put a stag of $50 dollar bill in your wallet. You definitely will have a more confident day.
@turnbullac6315 Жыл бұрын
500k in rainey day fund or emergentcy fund.
@bronson3577 ай бұрын
Cars are never a problem for me. I own 2 indestructible sh*t boxes and used to be a car mechanic.
@luisgracia60506 ай бұрын
Is it a Gx or 4Runner by chance? 😁
@bronson3576 ай бұрын
@@luisgracia6050 Those are good ones too. Mine are mid 90's and early 00's Hondas. These shall be passed through my bloodline for generations.
@timothychhim83423 ай бұрын
lol same my 90’s civic is a freakin legend
@c70427 ай бұрын
I have $203 (100-$2 bills, 2-$1 bills, 1 dollar coin) I have a hard time spending them. It seems CCs reign these days. I do have $7.5K in a savings account CDs though. Pays about $400/year. I have a hard time spending any of this because it's a pain making a withdrawal. I just guess I'm living paycheck to paycheck these days. It's easier money to spend since it's temporary anyway and whisky is cheap. I may be dysfunctional to be honest. I seem to myself to be happy. I live alone and don't have cats anymore. I've heard that they eat your face if you die. I have no plans to die but who does?
@bradleygraves59156 ай бұрын
Cash in this video is not cash. But in your account. Keep actual $$$ cash at home as well. I use it to get great deals on landscaping, home fixes, etc.
@PJBHolden7 ай бұрын
Money markets are paying over 5% feb 2024
@DionTalkFinancialFreedom11 ай бұрын
Reserves scale with the size of my portfolio. And I increased it when I retired. It’s the money above that amount I want working hard.
@tomf9292 Жыл бұрын
I keep a bunch of cash in a high yield FDIC Insured savings account. Paying me 41/2% APR currently. I can have it back in my local bank account in around 24 hrs if I ever need it.
@305_Satoshis7 ай бұрын
Emergency fund is ok but cash is designed to lose value over time.
@olbas2 Жыл бұрын
12 months seems excessive. Depending on my personal liabilities that could cause me to need money imediately, such as family car etc that would determine how much cash i would need. But 12 months is so much money that could go to investing
@grigorirasputin4257 ай бұрын
I keep $1M under my bed, I will retire in 20 years and will buy three weeks worth of groceries with that money
@DizzKidz7 ай бұрын
WTF? Cash is cash ... how do you consider money in an account cash? Weak title!!!
@gmo7097 ай бұрын
No guard rails when i was a kid or i never used em. Didnt play tee ball either. Played the real game. Anyway..yeah keep some cash handy for sure. Good info. Buy low. Buy quality, low. Sell when need money or find a better investment. And remember...time in market beats timing the market...most of the time! Keep fees low and diversify. Dont be greedy.
@monohydrate27 ай бұрын
Cash is king but stocks went up 25% last year. I keep 3 months emergency fund. My ROTH is at $250k which gives me peace.
@mxgryan7 ай бұрын
Crypto is the new king.
@francisebbecke27277 ай бұрын
Very good video. Whenever you ask a certified financial predator, sorry a certified financial planner, they will always say you have too much in cash and you should always give it to me to lose, sorry to invest. I am not always sarcastic, sorry realistic.
@trapiz0305 Жыл бұрын
Insightful information
@renitasanders70322 жыл бұрын
Tae, I keep a lump sum of cash in Marcus Goldman’s high yield savings with an interest rate of 1.30%. I am winning vs. a regular savings account in a bank. My money is accessible and safe!
@MeltingRubberZ28 Жыл бұрын
Discover savings is 3.6% right now
@bridge7528 Жыл бұрын
Salemdirect online is 5.1, I make $400 a month on my emergency fund. Not a cd so no time duration
@AltaicPride019 ай бұрын
Amex is offering up to 4.5 - 5 %
@renitasanders70329 ай бұрын
@@AltaicPride01I that was a typo it was 4.30% last year when I responded to this post. I am know at 5.50%. Thanks for the info.
@timothylindsay32447 ай бұрын
Guys….money market ETFs, some in the 5.3% range right now and funds highly accessible within a couple days, no penalties. If possible build 6-12 months there and a couple of months in Checking account and one is in pretty solid shape.
@ytang56157 ай бұрын
this is a very important video, and one of my favourite on money management. To keep liquid cash always worked for me ,and yet I noticed lot of people don't like the idea. it gives you so much peace, forget the minimal interest, and the time to think is invaluable. It really is an adult security blanket. thank you for your work.
@JoshD77721 Жыл бұрын
HIGH YIELD SAVINGS ACCOUNT that is FDIC insured there I said it
@_R8x_11 ай бұрын
You have the reason Berkshire is holding that much cash backwards! Buffet himself said that he doesn't want to hold cash, he wants his money invested. He's not holding it to wait for opportunities, but because he doesn't find any opportunities. Same result but very different reason. NEVER hold too much cash waiting for opportunities, this would have cost you immensely during the 2010s bull market. An emergency fund is a must-have, though.
@bonanzatime10 ай бұрын
Thank you for all the good information. I never knew Warren Buffett bailed out Goldman Saks.👍... also I see this was uploaded well over a year ago, so you are very insightful because keeping cash is even more relevant today with cash pulling in over 5% on average. That's a tidy sum.
@timothylindsay32447 ай бұрын
He didn’t bail them out…he bought them, like Mr Potter in “It’s a Wonderful Life.” :)
@Vt123657 ай бұрын
Keeping cash is the dumbest idea in the world for so many reasons. 1. It can get stolen, 2. You literally earn no interest on the money.
@HeathenwoodOfficial10 ай бұрын
Regarding CDs and low interest bank accounts, the better alternative according to Humphery Yang are high yield savings accounts.
@johncipolletti56117 ай бұрын
Now, places are giving a discount if you use cash.
@Peter-wc7dg11 ай бұрын
Probably it's best to get at least some interest on cash savings to help offset inflation
@JohnnyBarnes-n1u11 ай бұрын
I love the way you think.
@miketheyunggod25347 ай бұрын
All i have is cash.
@Omikoshi787 ай бұрын
2024 Tae: cash is for losers and stock is king 😂
@electromatt7 ай бұрын
Don’t you pay a penalty if you withdraw from ROTH before age 59.5?
@martincaro96987 ай бұрын
After 5 years of opening your roth you can withdraw all the money you contribute whenever you want but not ONLY your contributions not your gains
@shanenolan0856 ай бұрын
I agree 💯💯 i heard Mark Cuban say in a interview that having large cash reserves helps him sleep better at night 😴 i always tell people you dont have to sacrifice and have crazy amounts, but at least SOMETHING to help uf anything happens...
@RepublicanJesusthe2nd7 ай бұрын
That is very arrogant of you.
@yadamsurensh40037 ай бұрын
I know people who lost their lifesaving because they kept in cash….inflation money reforms And simply instability of financial save guard of state….maybe cash is good when you are have some other investments…what if you don’t have gun to protect and no food supplies???
@sndgamingchannel92797 ай бұрын
tl;dr; It's not an emergency fund if it's invested.
@filmaker2562 жыл бұрын
You hold so much cash because you're smart.
@briansamaniego-howard1806 Жыл бұрын
His what
@MidlifeMoneyMoves8 ай бұрын
His smart.
@Peter09876-8 ай бұрын
You're
@scottthompson34938 ай бұрын
We
@bitcoindaddy18 ай бұрын
One year later….😂
@tangyfog8 ай бұрын
really good ideas - keeping cash easily available make sleeping easier
@ADhammer7 ай бұрын
I understand your points, but I run on the lighter side. I don’t have kids, but if I had a family, I would keep more cash certainly.
@TimC887 Жыл бұрын
Is there such a thing as "too much cash in savings"?
@willerwin32017 ай бұрын
In a money market account making more return than inflation, I agree; it’s nice to have a solid reserve. If your return is less than inflation, then your cash’s value will erode.
@livingunashamed4869 Жыл бұрын
So true!
@appleztooranges5 ай бұрын
3-6 month isn’t enough. Especially if you own a house or have kids. Roof replacement is an easy $10-15k
@kckuc3107 ай бұрын
Totally agree , my brokerage account which has cash reserves
@northerngamingygo42747 ай бұрын
Yeah it must have been nice not making 22% last year
@thirteenwolfies Жыл бұрын
I love the bowling bumper analogy!
@pistopitpit10 ай бұрын
Cash is trash for long term investors. Period. With interest rates rising it can be tempted to park cash in savings account. But people forget that equities will still prove to be much better investment in long term. Higher inflation, higher interest rates only mean that expected future returns on equities are also higher.
@ericj90117 ай бұрын
True, except we don’t know exactly how long “long-term“ is. 10 years, a lost decade? 15 years like the dot bomb era? 25 years like the Great Depression? 35 years like Japan (and still counting)?
@pistopitpit7 ай бұрын
@@ericj9011 that is a good argument. People often speak about stock market recessions often in the context of how much stocks usually fall. That is not scary to me that they can fall 50% and one day I will wake up with my portfolio halved in value. Not scary at all, I am mentally prepared and educated about it. But what is scary are those long lasting periods of market downturn. Decades of decline. It is something I am not ready in decumulation phase for sure. But in accumulation phase this feels like a bitter opportunity to buy cheaper assets. I also think that investing globally and dca-ing reduces the risk of permanent loss by quite a bit.
@glasslinger6 ай бұрын
After the hurricane in Houston couple years ago all the cell pones were dead, ATMs dead, credit card processors dead! If you didn't have adequate cash on hand you were dead in the water!
@fannywayne19207 ай бұрын
If cash is king ..gold is god
@evinthestix74517 ай бұрын
I have a behavior problem where cash on hand causes me to spend more. If I invest and it’s illiquid I won’t spend it… making my asset less liquid forced me to be more frugal. But maybe I should work on the underlying problem and keep more cash
@kckuc3107 ай бұрын
Yes that’s a separate issue. Having cash gives you peace of mind, not more incentive to buy more.
@stephenluko33012 ай бұрын
Disagree on cd’s. A CD is a great short term investment - say 3-6 months - and you can get these products at 5+ % these days. You can also lader them if you hold several of them or more. A great option for retirees!!
@ColtonJohnsonBrice09 Жыл бұрын
Well done! I agree 100%. I extracted my wealth from options premiums and converted to half equities and half cash.
@twotokes1734 Жыл бұрын
Other simpler reasons cash is king. kzbin.info/www/bejne/pZjdh6uBm7mgarM
@herewegotoday10 ай бұрын
Just curious, do you keep 6-12 months of current living expenses? I just think if I lose my job I'm probably also cutting costs and wouldn't need quite as much.
@crystalclear20898 ай бұрын
I would, even the normal living expenses would be cut down, other unexpected expenses may occur, especially the medical and insurance premium. my husband had a stroke last year, the insurance stopped paying for the nursing home after two months, we ended up paying out of our own pocket around 8k, having enough cash available can give you a peace of mind.
@herewegotoday8 ай бұрын
@@crystalclear2089 thanks, I totally overlooked the medical insurance part.
@crystalclear20898 ай бұрын
@@herewegotoday you are welcome. It’s an eye opening experience, the nursing home cost us 8k/month for 5 months, on top of that we both lost our job during the time, it’s very stressful, fortunately my husband has a long term disability insurance to cover some and we have a sizable cash available with no debts (thanks to my Chinese culture, it’s all about saving money). IMO, you really need to have at least 12 month emergency funds in case of any catastrophic event in your life.
@europana77 ай бұрын
Credit cards are king as long as you can pay it off end of month
@shanetoler99055 ай бұрын
Every time I see and hear people say "cash is trash" I just laugh.
@Emrico355 ай бұрын
usd lose %4-5 value each year. fiat money is trash.
@timkavanaugh6474 Жыл бұрын
Only thing in terms of “no matter what happens” would be insane inflation. I’m on your team but just my thoughts.
@gomperhooblet11 ай бұрын
That'll still wipe you out if you have your money in investment funds and such though wouldn't it? I would have thought that the only way to survive that is to have assets and keep them until the storm is over
@pistopitpit10 ай бұрын
@@gomperhoobletyes. And that asset is definitely not cash 😂
@gomperhooblet10 ай бұрын
@@pistopitpit For sure
@domman10778 ай бұрын
Correct. Cash is never truly king, it’s dying a slow death. The only purpose of cash is actually buy valuable things that will hold their value. Cash is only “king” temporarily. At the end of the day it’s still a currency that government devalues everyday by printing more of it
@timkavanaugh64748 ай бұрын
Yeah I’m saying liquidity is king, but cash gets crushed over long term
@hansel20017 ай бұрын
I agree with all your well laid-out points. I would add 2 more reasons why cash is king that i think you’ve missed. 1) In addition to liquidity, cash is fungible. Real estate is good to hold, but it’s not completely fungible. And I’ll assume you referring to the USD when you are talking about cash, and the USD is the most fungible of all. 2) Cash can be anonymous and thus hidden from the tax man. So when many Americans (especially on the coasts) have a problem buying their first home because “we lost out to an all-cash offer”, that’s because that home was usually bought by dirty money coming from overseas, usually mainland China. Why do the Chinese buy homes all cash? A) they have it, they need to get it off the mainland, and they need to spend it. B) All cash purchases bypass any bank scrutiny, credit checks, and government checks, and other approvals. And THAT (in addition to your reasons) is why cash is king.
@m3tek448 ай бұрын
Another great recommendation! Having cash is king!
@suurikat6 ай бұрын
Remember, it also depends on your currency. Of course, cash is good in USD or Euros, but in places where inflation is more than 15-20% a year, it will be better to have cash only if you will use it in 6-12 months
@averylarson821310 ай бұрын
does he mean cash as in literal paper cash? or like having it in HISA?
@valeria-militiamessalina56727 ай бұрын
Haha If you listened you'd know. He means money that could be available immediately or very fast if needed, as opposed to money kept in investments that cannot easily be withdrawn without significant penalties or loss, not necessarily "money under the mattress", can be in savings account, etc.
@helennwafor29037 ай бұрын
I completely agree !
@Shellbee226 ай бұрын
Also very important long-term disability, private policy (not through work ) and long-term care policy
@Fjjfuffnr2447 ай бұрын
I never thought holding cash is for losers. But I have never held cash other than for immediate bills. My first real jobs after college i routinely took advantage of stock purchase plans and stock options to generate a lot of assets super fast. Obviously in a taxable brokerage that can be turned to cash in a few days. That was my emergency fund. If i needed Anything sooner it can be covered by a credit card. If it was more urgent then theres probably a ransom note involved, in which case my first call would be to the FBI not my bank.
@CRVgarage7 ай бұрын
100% agree.
@mave1987 ай бұрын
Anybody who listened to this guy lost out on big returns last year in the market. Every single penny you have should be invested save for maybe two months worth of bills in your bank account. Emergency funds are a complete waste.
@zaldum3867 ай бұрын
Ir you have a diversified portfolio with us stocks us bonds eur stocks and eur bonds and gold you will always have “líquid” and some of those assets might be temporary down but not all 5
@Jeguia857 ай бұрын
Cash is great, but if you have access. Why not invest in income producing assets and create more cash! Just saying…