what percentage of your net worth (excluding property) do you keep in cash? And why #investment
Right now I have around 2.3% in cash. It represents about 6 months of expenses. Why? Well, I think cash is tempting to spend, so the less cash I keep on hand, the less likely I am to make large purchases. Over time I’ve found the large purchases are usually my biggest mistakes by far. Second is that recently my savings has gone to maxing my retirement and laying a foundation for riskier investments. Since the 401k money will be invested for another 30 years, cash would be a stupid move. I paid off my mortgage to reduce my fixed costs. I kept the money in like 60% bonds 40% stocks while saving the lump sum for the payoff. It did worse than the market but saved me a few hundred dollars. USD is becoming riskier as the national debt increases and inflation is the only tool we have left. Beyond what I’d need to eat while hunting for a job, I’d much rather hold value in a diverse basket of conservative securities. Remember, nobody is going to announce “THE USD IS INFLATING!” Instead, shit will just get (more) expensive, and you’ll either be holding assets that are also rising or not. To this end, *reducing fixed costs* is, in my mind, the #1 way a person can reduce their exposure to cash and give their future self more options to make moves as the future unfolds.
Fed policymakers on Wednesday announced an increase in the benchmark federal funds rate to a range of 1.25 percent to 1.5 percent, the third increase in the key rate this year. The move — which will mean higher rates on consumer loans, some mortgages, credit cards and other loans — indicates the central bank is confident in the strength of the economy and ready to push rates to more normal levels.
Adjustable Rate (ARM) Mortgages Have Been Shunned For Years — But Should Be Considered In 2017
Surprise Surprise, the author sells mortgages…
I’ve been doing screencasts of myself explaining the $60k bay area scenario. It’s rough, both literally and because watching yourself on camera forces you to see yourself as you are, rather than as you would like to be. The pain of being bad at something… it’s normal, and I keep pushing forward.
On the plus side, each new take improves significantly:
- I get more used to saying the content
- I improve the visual aides each time as I notice what is missing
- I think less about the fact that I’m talking into a mic
I have been making some blatant errors though (e.g. saying 60 years when I mean 30). Those bother me because I only detect about half of them when they spontaneously come out of my mouth. The other half I notice while listening. It’s not a huge problem, but they bother me.
The other thing I’ve noticed is that I need some more nuanced explanations. Sometimes I’ll use “dumb” or “stupid” in a place where I really mean something more specific (eh… maybe lazy or just “not that profitable”… not sure yet). Stupid is a great word, but it needs to be used in the appropriate situation. When I use it in my recordings… I’m being LAZY. lol