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.
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".
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.
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.
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.
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.
@@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.
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!
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.
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.
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
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.
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...
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.
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.
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.
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.
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
@@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
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.
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
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
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!!
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.
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.
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
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.
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
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!
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.
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)?
@@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.
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.
Keeping cash in roth IRA to me means it is inside the account but held in CASH, not equities. So you're not selling any depreciated assets in an emergency... also no HYSA coverage?
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?
No on CBDC central bank digital currency is a digital currency issued by a central bank, rather than by a commercial bank. It is also a liability of the central bank and denominated in the sovereign currency, as is the case with physical banknotes and coins
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.
He obviously doesn't mean liquidity, he means cash. A clear example of this was given with regards to the Roth IRA. It sounds like you're confusing cash and, per happens, currency. However, in this day and age in America, which uses a fiat currency, the two (cash and currency) are commonly interchanged, as all US money is currency, and not cash. So He's is technically, and in actuality, more correct than you.
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😉
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.
![Tee Grizzley - Blow for Blow (feat. J. Cole) [Official Video]](http://i.ytimg.com/vi/wNLN5xsx5dc/mqdefault.jpg)
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.
you're a legend, now I want it too
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".
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"
absolutely
Too much cash gives me anxiety thinking about the opportunity cost of not investing enough
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.
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.
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.❤
Whoever thinks cash is trash belongs in one! Excellent advice as always, sir!
While the general stock market is up 22% lol
Technically it is physically disgusting and literally filthy. But everyone should have some tucked away.
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.
Still losing it due to inflation though. Use cash on a start business and bet on yourself.
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.
@@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.
@@warrenlowe676< stupid
@bonanzatime the market has been amazing though
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!
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.
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.
Honest Guy
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.
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
This. Holding more cash short sighted, investing rewards more over time
Great points! Esp about potential parental care!
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.
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
Other reasons why cash is king. ruclips.net/video/ogzVxKfTm4Q/видео.html
Well done! I agree 100%. I extracted my wealth from options premiums and converted to half equities and half cash.
Other simpler reasons cash is king. ruclips.net/video/ogzVxKfTm4Q/видео.html
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...
Cars are never a problem for me. I own 2 indestructible sh*t boxes and used to be a car mechanic.
Is it a Gx or 4Runner by chance? 😁
@@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.
lol same my 90’s civic is a freakin legend
I love the way you think.
I love the bowling bumper analogy!
Insightful information
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?
So true!
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.
Another great recommendation! Having cash is king!
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.
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.
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.
I completely agree !
Health is Wealth Period !
Regarding CDs and low interest bank accounts, the better alternative according to Humphery Yang are high yield savings accounts.
Great info and excellent channel, Tae. Thanks and keep up the good work.
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.
Probably it's best to get at least some interest on cash savings to help offset inflation
500k in rainey day fund or emergentcy fund.
100% agree.
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
Hear! Hear!🎉
Keep your liquid cash in a high yield savings account.
That’s where I keep mine. For my emergency fund.
@@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
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.
Only thing in terms of “no matter what happens” would be insane inflation.
I’m on your team but just my thoughts.
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
@@gomperhoobletyes. And that asset is definitely not cash 😂
@@pistopitpit For sure
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
Yeah I’m saying liquidity is king, but cash gets crushed over long term
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!!
Also very important long-term disability, private policy (not through work ) and long-term care policy
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.
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.
Crypto is the new king.
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.
All i have is cash.
Great info 😃
Another point of view why cash is king. ruclips.net/video/ogzVxKfTm4Q/видео.html
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.
You hold so much cash because you're smart.
His what
His smart.
You're
We
One year later….😂
Great video
Money markets are paying over 5% feb 2024
HIGH YIELD SAVINGS ACCOUNT that is FDIC insured there I said it
Yup. High rate saving account and mm for me 👍
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
Now, places are giving a discount if you use cash.
Vanguard has a money market account that offers 5% interest rate. Good video.
Yeah it must have been nice not making 22% last year
Good video
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.
tl;dr; It's not an emergency fund if it's invested.
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
sound advice-i will takeitand work on it; this weeki am unable to do much due to medical problems
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!
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.
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)?
@@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.
Good now i know who to rob lmao
Fully agree. People look for the sugar hit of spending. Cash and gold are king
What do you think ABOUT FIXED ANNUITY?
How do find a secure high yield savings account?
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 🤣
does he mean cash as in literal paper cash? or like having it in HISA?
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.
What about gold do you see gold as a form of cash
Keeping cash in roth IRA to me means it is inside the account but held in CASH, not equities. So you're not selling any depreciated assets in an emergency... also no HYSA coverage?
Question: is This cash separate from or par of an emergency fund
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?
Emergency fund is ok but cash is designed to lose value over time.
I want 2-3 years emergency fund but 6 months is fine for now.
PREACH.
That's the right attitude.
Food & Ammo isn't far behind.
I keep $1M under my bed, I will retire in 20 years and will buy three weeks worth of groceries with that money
You can borrow the same amount of money that you have sitting in your bank account and use it. I'm not talking about buying crap you don't need.
Cash is great, but if you have access. Why not invest in income producing assets and create more cash! Just saying…
No on CBDC
central bank digital currency is a digital currency issued by a central bank, rather than by a commercial bank. It is also a liability of the central bank and denominated in the sovereign currency, as is the case with physical banknotes and coins
Cash is king?
Bitcoin is king
Are you cousins with Financial Samurai?
I hold all my cash under my mattress
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.
usd lose %4-5 value each year. fiat money is trash.
Totally disagree. Keep 1-2 months cash on hand. The rest should be invested. Time in the market beats timing the market.
Bitcoin is ponzi
WTF? Cash is cash ... how do you consider money in an account cash? Weak title!!!
Noooooooo
So what you actually mean is "liquid is king" not cash. If you keep your money in a bank account it isn't cash.
He obviously doesn't mean liquidity, he means cash. A clear example of this was given with regards to the Roth IRA. It sounds like you're confusing cash and, per happens, currency. However, in this day and age in America, which uses a fiat currency, the two (cash and currency) are commonly interchanged, as all US money is currency, and not cash. So He's is technically, and in actuality, more correct than you.
What? Cash is fiat currency it's a melting glacier always loosing value buy bitcoin
That is very arrogant of you.
This is some primitive thinking
WAHHWHGZHSHHFHSAHGFSAHFGHAGHJshdgjHDJGHkduhjkhhHUHDUIHSAUIFsdhfnuashdnfuhasduifhnasuidhfuiashdnufhsudfaunhf
i love you.
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😉
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.