How Much Cash Should I Keep In The Bank?
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- Опубликовано: 31 май 2022
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A financial management system combines several financial functions, such as accounting, fixed-asset management, revenue recognition and payment processing.
Financial experts like Timothy Eric Meek can help individuals and finance teams achieve these goals.
Thats very important to know, Timothy Eric Meek is very intelligent.
I will be glad to know the best way to reach him please
Why tell a person to sell their bitcoin when it’s not doing well? Sell it when it’s high.
Well hopefully he kept it
Yeah, his Bitcoin remark didn’t age well………
What should he sell the BTC for? Something less appreciating?
He was wrong to say that when he doesn't understand the market. Bitcoin has been on up trend since November 2023 and will go higher after Halving sometime this year.
Yeah, I am not a fan of the bitcoin but that remark from a guy is very incompetent...
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Mind if I ask you to recommend this particular coach you using their service?
Laila artine kassardjian' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Sell all the BTC cause it’s not performing well anyway- that didn’t age well 😂
Right? They really are clueless when it comes to investing.
Darn I hope he did not listen to Rachel kind of not so smart lol oops😮
BTC isn't a way to wealth. Instead cash it out and put it into a Roth IRA. $15,000 initially invested and putting $500/ Monthly @ 8% CI. That would be close to $2.5M at age 65.
@@aaronproctor1736 🤣
@@aaronproctor1736that’s old school. There’s new ways to wealth. Look up the yearly returns on BTC.
Love Rachel; she just seems more relatable than other Ramsey personalities.
I agree. I used to like the black guy the most though. Where is he now?
I agree!
@@microfarming8583 Anthony? He branched off and has his own channel now Anthony O’neal.
Rachel and Dr. John are the only ones that I can stand at this point.
@@microfarming8583 are you talking about Anthony or Chris?
23 and he is making 78k and getting a raise to 95k soon ? I don't believe a word of it.
thank you for these videos ... there a big help
Thank God every day u make good money like that. u are blessed
This guy has zero problems. God, I wish I could have been debt free making $100k at 23...
You won’t believe it but making that much money in your early 20s could be detrimental to your future. People at that age do a lot of stupid stuff such as gamble, have multiple girlfriends, buy stupidly expensive cars just to show off and so on. The best time to have money is after you marry , have a house and a child and it won’t hurt at all if you are a Christian too
@@AutotuneSucksBalls bro the best time to have money is young if you approach life life this.
@@AutotuneSucksBalls That's what stupid people do. Smart people have a diff. mindset. Plus, there is more info. available now than ever.
Exactly
@@chocolateangel8743 Most people are stupid. He's right, most 20 something year old's with a lot of money go nuts. I probably would have too.
There are high yield savings account that offer 5% and you can pull it out any time.
like which one ?
@@mbank3832 There are multiple. Google Hugh yield interest savings accounts.
IDK the specifics, but recently banks started doing this again - it used to be better back in the day. But I think capital one is ~4% because that's the one I recently opened using a promo code to earn $x if you transfer $x within x days. But it's not just capital one, I just already had a checking account with them.
@@mbank3832 Wealthfront. They are great. They tell you in the beginning of the month what your expected earner interest is, and at the end of the month, they add the interest and tell you how much you actually earned. No penalties for taking money out and no required minimums or maximums to get the 5%.
Put the emergency fund in a high yield savings account.
Emergency fund in a high yield savings account.
They both did a great job answering this!
Working and living with parents is great
That’s right it’s a jungle out there! Why kids are staying home much longer than ever before. Lol.
This guy is a Starboy. Thanks for the inspiration.
Ramsey never mentions a HYSA and they should. It's a lot better place to put your emergency fund, zero risk as long as it's under $250k.
Rachel's great with knowledgeable advice.
What a lucky 23 yr old! He’s killing it! Someone raised a smart young man.👍🏽
Lucky being the key word. Lucky he had free college.
@@toctrebWell in that case kudos to the parent again. I don’t see any problem in either case ✌️
Not the school system lol!
Sounds like ya know, a super genius
He keeps saying "in his checking". You can get instant access, with no penalty, in a Money Market Account or High Yield Savings Account.
Ever since the first time I heard it, it made so much more sense. The emergency fund is insurance, and insurance costs you money. Love that!
Stablecoins and hard metal
@@derekjelinski5651 don’t have children
@@derekjelinski5651 you mean like UST (Terra)? LOL
@@jx6564 Its insane how many ppl had all their wealth in Terra, when you should only put enough you can afford to lose. I suppose some felt they could afford to lose everything
That's what I've already said. Thx.
I just keep enough to avoid the bank and CC fees. Like 5 grand.
He should just keep his investments and start banking his money now for his emergency fund.
This is a high value man. 23 yo and already concerned about his financials. About the liquids, just add more to it until you have 3X to 6X your monthly expenses.
Cash is the second best performing asset this year (including the high inflation).
Make sure your emergency fund is not in a regular checking account...... An online savings account (ally, amex, ect) is currently giving 1.75% returns!
1:59 "sharp guy" 😂 he probably is, but "lucky guy" would make much more sense. He even said himself that he was lucky enough to not have to pay for college
Didn’t have to pay for college? See how not paying for college puts you in a great position in life
If you think paying taxes your entire life for "free" college is cheaper than paying for college yourself, you're delusional
SOMEONE has to pay for it.
He also got a degree that allowed him to earn $100k+ right out of school. Why should the taxpayers have to bail you out of your english lit major?
My hard working neighbors owe me a glorious revolutionary free education for Correct Thinking and Speech.
...without offering a solution or how it was acheived in the first place...the point being...?...
Hey Bo, welcome to the show!
It rhymes well.
I'm a father of two who bought a house last year. For me, it was a major turning point! In addition to feeling the effects of the economic downturn, I'm lucky enough to enjoy a respectable monthly income from wise investments that I've made. I have therefore meticulously prepared for my retirement following my children's graduation from college.
Wow, interesting indeed! Currently I'm in need of investment ideas or tips. Earlier this year I hesitated and failed to take any action until now. However, I'm determined to try something new as I am very open to various investment ideas . I want to be retired in my forties or fifties. I really wish I can achieve what you have achieved and I believe it will happen
It's essential to comprehend the complexities of investing. Having a trustworthy support system, such as a financial adviser, who can advise you is crucial, especially when choosing assets.
Thanks for the advice but it's hard to get a trustworthy financial advisor here..can you recommend one?
Generally, investing requires higher knowledge. For this reason, it's important to have a solid support structure to guide you through especially in asset picking. I operate with (Alex martin tarlor) an investment specialist who partners with a licensed wealth management firm. For the record, his experience has been the best for my finance
Thanks for talking about your financial consultant. I will definitely look him up and get in touch with him
One problem with "math-based" thinking, where you keep very little in cash in favor of higher-return investments is this: the very circumstances which create an urgent need for cash are often the same circumstances which cause the market to temporarily tank. Then, you need to fire sell your investments to raise cash. I'd go with Dave's advice on this one, maybe using an online bank to get a little better return on that cash.
At 23 this is Amazing!! I wish I was at this point at 23. Wow. Great job kid!!
His parents are rich...he was spoiled the rest are the norm😂
Definitely needs a bit of a safety net, but if his expenses are minimal (living with parents?) I think he should work towards maxing out his Roth 401k (company match going into Trad. 401k).
love this channel
Also, one more thing:
DON'T GET MARRIED
VERY TRUE
True, and don’t have kids out of wedlock. Lol.
I appreciate this question.
Dave Rachel and Ken are the best.
Very well said on the emergency fund not making money its insurance and you usually pay for insurance right =) so think of it as an investment to skip the interest payments on that emergency cost. If you have to spend 10k on 6-9% interest making min payments you pay more in interest then you would losing 2-3% on that 10k invested because life happens and it happens more often then you think =).
Love rachel and george. This caller has hes head screwed on straight. Well done, your doing a brill job.
Why not build your emergency fund in a high interest savings account (ex:Ally)? May not be the greatest investment but sure beats a checking account rate.
Mr. Cruze is ONE LUCKY MAN!!!
I am 22 and I am about to make similar money as this guy and my parents are letting me stay to save and invest. I am going to help them out whenever they need me of course. It is nice to hear a guy like this talking because I am also heading the same direction. No bitcoin though. I only have 15k in my bank account. Debt free as well. I feel good hearing and I am pumped.
A lot of these callers call just to brag and they already answered their own question . Have someone more realistic making 40-50k with normal expenses bills
90% of these calls are train wrecks. Not hard to find. Nice to see a good example for once where someone is doing the right things and is winning.
Sounds like a brand new 2LT. Gone and get that Raptor
The real answer is that emergencies are more common when the market is bad. You don’t want to be forced to pull from your investments at the worst possible time
Bingo, you nailed it!
Seems that way, doesn't it? If the roof is going to blow off at the same time the car takes a crap, you can bet the market is in the toilet!
I love it when they bust out the old school air control headsets
Half of my emergency fund is in a short term bond ETF or short term bonds the rest is cash. ETFs are very liquid and their current rate is more than 5%.
Greenspan: "We can guarantee cash, but we cannot guarantee purchasing power"
Definitely a good question.
He could put the cash in a checking account at a credit union and make 3% to 4% annually
Great Question
He sounds like my grandson. He is 23 and had $20,000 in his savings before he graduated from high school. He worked odd jobs. He bought a house last year. Now he has his own construction company.
Wow that’s impressive! I’m sure you’re very proud of him.
Imagine cashing out of bitcoin at $16k one year ago and watching this back today
🤷🏿♂️ he didn’t have an emergency fund
😮100k in 1yr from now.
I withdrew all my money and purchased gold and a home in baja😊
For me, $3K in a checking account won't even pay my bills past a month. Even if his monthly expenses is less than mine, $3K is still too little liquid to have.
I wouldn't put myself in a position where if an emergency comes up, I'd be forced to sell my investment especially when said investment is at a low, so it would be selling it at a loss. That's a terrible position to put myself in, which I'd never do. A safe liquid amount for a low expense person would be around $30K, but that's just my opinion.
10k is pretty good.
30k is a lot of money to have just basically sitting there doing absolutely nothing. For a single person that isn't elderly or sickly I can't even imagine what type of emergency would pop up where you'd need anywhere near that amount. If you were to lose your job you could easily find some sort of replacement gig, there is a massive worker shortage right now. I personally have about 8-9 months of my expenses in cash and I really don't feel I need more than that.
@@garchah1 10k is enough to cover for things like home or major car repairs. If you were to lose your job it's a decent sized cushion you can fall back on. Again, it all comes down to your individual circumstances, a single individual with no kids and little to no debt should be fine with something like that.
sounds like for his basic living expenses he lives paycheck to paycheck and being very aggressive with investing, everything else he invests.
it's so variable person to person you really can't judge what is a good amount for someone else in a different city... I've got over a year's worth of expenses in cash and I like the security - and yes I've got other investments so I'll be fine in the tiny chance that the dollar goes into hyperinflation. I think people get too focused on the "don't have anything but the bare minimum in cash" cuz you're losing money thing
GREAT question
As Little as possible. Enough to pay your normal monthly outgoings, like a mortgage. and food. Put all you can afford into bullion. In an emergency you can cash in a Golden Eagle or two. If your bank goes belly up you can't lose much.
A few thousands of cash depreciate like 100 dollars a year, which is totally fine for the peace of mind it gives you
"Cash out the BTC, it's not doing that well"....this aged well 😅
I would like to have a paid off house , live off dividends from S & P 500 and have an Emergency fund.
These Ramsey proteges have been way off on BTC. Watching this a year later. this guy would have 3x his money. That is the problem with know-it-all investor gurus.
I hope he didn't sell his BITCOIN. It's up over 140% from when they gave this advice.
I've never had to ask myself how much is to much
Note: if you need liquid cash in bulk, the bank may make you order it which could take a couple days. Banks don’t like to give out $10K all at once. Have some cash in a safe too.
Nice video!
Lol. "It's not doing great" that did not age well. 😂😂😂
Bitcoin was at about $30K when they recorded this. I think he knew not to sell it.
Answer: as much money as you can right now. you should be stockpiling cash going into a recession, cutting back on expenses and spending overall, gazelle intense savings, and hunkering down. We are in for a big storm. The more cash the better
This comment didn't age well! No recession! Stock Market at all time highs!
@@alansach8437 You don;t hop off the train as it's crashing
Yup, Stocks are volatile. I lost almost 17 Grand last week.
It took almost 3 days to make it back
High Yield Savings account, Marcus is great right now
4:43 yup he is soooo right
Loved the advice; and well done to the young guy for doing so well so early in life!
I just got recommended this vid. I also have a similar salary after graduation. No debt either. My parents are letting me stay at home so I can save and invest. I don't have crypto that is the only thing that the guy and myself are different in. Single as well. So I will just focus on work and treat myself with moderation. Definitely would be saving for a house while doing investing and treating myself and my parents.
I like online savings accounts. For example, Synchrony Bank High Yield Savings Account, 4.75% APY, no minimum balance. It is much better than regular savings account.
I put all my money that I’m not investing or using in my HYS Synchrony account.
@@jaedyn06 Me too. I like this account a lot.
Cash in the bank is looking pretty good about right now.
Bitcoin up 150% since this video, great advice you gave gim
lol saw that as well.
Bitcoin is extremely speculative. They gave solid advice for the time. Everyone at the time was convinced its was going to zero. Now every is convinced its going over 100k after the halving. There’s no real consistency
Na people that dont invest in that class of asset thought it was going to zero. @@KingCzar29
@@KingCzar29I don’t know a single soul who thought Bitcoin was going to zero.
@@potatoeslol1216 good for you champ. With all your wisdom you probably went all in and are now set for life 👍
Half a years wages in savings is what I like 👍 👌
Finally a comment as to the fact that “life is important too” lol
It takes 1.5 business days to transfer money from my money market (5.26%) to my checking account.
Even the emergency fund it’s not safe at the hands of banks!
He seems and sounds more mature than others his age .
Likely because its a staged call?
It’s clearly fake
@@alia1824 It's not a staged call because I have been a caller on the show
Yeah that was my thought too. Either he’s lying about his age or he grew a little too quick. Being responsible is great, but I hope he allows himself to enjoy his 20’s too.
These guys are like the first grade when it comes to Finance. Absolutely not designed for anyone with any sort of financial sophistication.
Which is most people! Which is why it's such good advice!
1%? My emergency fund, sitting in a bank, makes 3%. And it's available instantly - I even have a debit card for it.
This video is from a year ago. 3% is good at a brick and mortar bank. Fidelity account is almost 5% today.
What has worked for me is 50% cash and 50% in stocks. The cash will underperform but the stocks will will make up for that and you will have a nice average.
is there any reason to have a "boring old savings account making 1%"? Considering how many high yield savings accounts there are these days. My emergency fund is in a 4.9% savings account.
Good advice--thanks! PLEASE work with your audio tech on plosives--the issue is either the mic itself or the mic placement. Very annoying. But thank you again for the advice!
Funny how some people go to this show to ask for financial advice, bro they aren't Warren Buffett.
In regards to an emergency fund, I’d rather invest my money in a mutual fund and have a line of credit for quick access to cash. What if you sat on the cash for 5 years because you never had an emergency? The opportunity cost there would be far greater than the potential need to access a line of credit short term.
ya Bo my boy, you might want to spend some money on an engagement ring LOL
what would he need instant cash for? Ransom? LOL. Also, bad call on the Bitocin! Whoops!
Counter party risk yo!!!
I've always wanted to hear them address the concept of a checking account buffer, even when you're on bs 2. I thought that's what this video was, without the investment part.
The buffer recently came up for us in conversation. We are on BS3B. Our FFEF lives in our savings out but we have about 1K (half a month's expenses) in the checking account as a buffer. When emergencies pop up we usually pay off from the buffer instead of pulling from the savings account.
@@HandleToWatch Makes sense! I just have wondered if you're following his plan and every red cent outside the starter e fund goes to debt, how much margin do folks allow themselves in checking in case a bill goes higher than they expected?
Overdraft fees are awful. It's always seemed to me they preyed on the poor that way.
Love how wrong they were about bit coin. The one thing I don’t like about the Ramsey people is how against crypto they are and stuff like that
"Go ahead and sell your bitcoin, it's not doing that great anyways" 1 year later, his money has doubled if he held on. BTC 23k to 50k. just watch what it does into the next year. Blackrock wouldn't be buying it up if it wasn't a good investment and putting an etf on the market. It's getting adopted by institutions, don't miss the boat
Try to maintain a Min of 20K in savings. 5K in checking.
I’m just curious, why can he not have his checking account and put the bulk of his emergency fund into a high interest savings account that you also have access to? Maybe the US banks or credit unions don’t have a savings account where you have daily access?. I know that I have several savings accounts where I earn higher interest and I have my one checking account where I get no interest. And I just transfer monthly or if necessary weekly any funds that I need in my checking account to pay bills. Seems like a no-brainer to me. Savings account for the bulk of the emergency fund and checking account for every day expenses. You can just transfer over online from savings to checking, which is what I do.
High yield savings account for your emergency fund!
He should place his liquid in an HYSA.
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
at 66, i laugh about ''the market''. cashed out when biden got in. we are too far gone and joe has made it worse. no family left to worry about. ''i am my own legacy''. instead of income streams, i have an income pond. cd ladders are a beautiful thing. i sleep like a baby not worrying about the ''roller coaster''. i'm headed to off grid cabin on land to really lower my expenses.
they say the guy should take his money out of BTC because its doing bad but then turn around and say the stock market is down alot and its a great opportunity😂😂
Keep $5-$10k in a sale at home
Horrible advice on the Bitcoin.
These people clearly haven't done any reading to understand bitcoin. It's okay if you are not interested or lazy but don't make any recommendations regarding an asset if you don't know anything about it.
Bit coin exists only as electronic bits on a computer. Warren Buffett says never to invest in anything you can't fill up a stadium with! If I buy Apple Stock I can fill a stadium with computers, if I buy Exxon Stock I can fill it with gasoline. These companies produce tangible goods. Bit coin exists only in the imagination of the people who agree that it exists! No thank you! I don't care what you say it's worth. I don't care how much money some people have made. It isn't tangible.
Hopefully this gentleman did not take their poor advise, Bitcoin doubled since then, emergency fund also should be in money market account as it will gain some interest. (if needed it can always be taking out without interest, but if you wont have emergency at least you wont loose potential interest for the period)
Ramey loves finance so much he gave his Daughter.