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Old 09-28-2014, 04:23 AM
 
795 posts, read 1,038,725 times
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Quote:
Originally Posted by Pitt Chick View Post
Nope.
The OP is not getting ahead because he is stashing cash in a safe. No interest, no growth.
Family size and income are irrelevant.
BUT, the OP is saving money since he/she does not have to buy furniture. Get that money in one dollar bills and soon you have enough for a TV stand... then a desk... dollar bill bench for a chair.
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Old 09-28-2014, 04:26 AM
 
71,754 posts, read 71,853,273 times
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cash today is like owning call options on stocks at lower prices at some point . cash can be very important today even at zero as part of an investment plan.

to many folks stuck cash in to corporate bonds in 2008 rather than get lower rates in more liquid low yiielding places . then when stocks had a fire sale they didn't want to sell those bonds or funds at a loss since corporate bonds fell also.

they then missed the biggest fire sale on stocks many of us may see in our lifetime.

a solid plan for investing trumps getting every last penny of return any day. it is called chasing yield and usually it never ends up being the best way to grow your money despite what folks think. it usually ends up being penny wise and pound foolish for quite a few reasons.

take a mix of 50% stock and 50% cash. the cash can be used to control the volatility to a comfortable level for an investor. putting money in to higher yielding bonds may seem wise. but in a scenerio now where rates are poised to rise the losses in the bonds will be greater than any gains you may be giving up in cash

one strategy i used for 20 years had a constant 25% stake in cash at all times. that portfolio beat 100% in equities for 35 years.

Last edited by mathjak107; 09-28-2014 at 04:56 AM..
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Old 09-29-2014, 07:49 AM
 
24,843 posts, read 32,420,004 times
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We keep our money in safety vaults in banks.......it is cheap and safe.
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Old 09-29-2014, 06:15 PM
 
795 posts, read 1,038,725 times
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Quote:
Originally Posted by Driller1 View Post
We keep our money in safety vaults in banks.......it is cheap and safe.
It is cheap... safe? Only safe as the next natural disaster or unexplained and never suppose to happen meteor shower.
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Old 09-30-2014, 08:34 AM
 
Location: NY/LA
3,367 posts, read 2,837,715 times
Reputation: 2594
Quote:
Originally Posted by King_of_DC View Post
It is cheap... safe? Only safe as the next natural disaster or unexplained and never suppose to happen meteor shower.
It's also not safe from inflation. Additionally, if you were keeping it there in case of an emergency, there's the risk that the bank may remain closed, especially if the emergency is something widespread like a natural disaster.
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Old 09-30-2014, 06:37 PM
FBJ
 
Location: Tall Building down by the river
39,615 posts, read 50,345,998 times
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Quote:
Originally Posted by Mr. Zero View Post
It's also not safe from inflation. Additionally, if you were keeping it there in case of an emergency, there's the risk that the bank may remain closed, especially if the emergency is something widespread like a natural disaster.


How do you feel about online savings accounts?
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Old 09-30-2014, 06:41 PM
 
18,449 posts, read 20,211,698 times
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I have some cash on hand at home, some in savings in the bank, some in checking, some invested in different things. I usually carry a few hundred on me because I've had a ATM card break and had no cash on me to get fuel. Had to walk three miles to a bank to get money.
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Old 09-30-2014, 08:11 PM
 
18,868 posts, read 13,635,860 times
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Quote:
Originally Posted by Electrician4you View Post
I have some cash on hand at home, some in savings in the bank, some in checking, some invested in different things. I usually carry a few hundred on me because I've had a ATM card break and had no cash on me to get fuel. Had to walk three miles to a bank to get money.

Do you not have a credit card?
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Old 09-30-2014, 09:20 PM
 
795 posts, read 1,038,725 times
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Quote:
Originally Posted by Electrician4you View Post
I have some cash on hand at home, some in savings in the bank, some in checking, some invested in different things. I usually carry a few hundred on me because I've had a ATM card break and had no cash on me to get fuel. Had to walk three miles to a bank to get money.
I keep coins at home... have a chance machine and wrap my own coins. Normally have couple of hundred in coins.. no other money.

I've always had more than one credit card for this purpose.... normally a debit card (use like a credit card in emergencies).

Sounds like you might want to rethink how you do things... plastic is not evil... I never carry a balance on my credit card, but I get money back all year for using my credit card (I know, they get it from merchants... so the banks are not really giving me anything).
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Old 10-03-2014, 04:39 AM
 
Location: Mount Airy, Maryland
10,470 posts, read 5,939,796 times
Reputation: 16170
So there are still people out there essentially keep their money under the mattress. Wow.
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