Comments on: Savings Accounts – Why DON’T You Have One?

By: writing2reality

writing2reality — Fri, 26 Apr 2013 00:04:36 +0000

I agree, investing is the way to go for the bulk of your funds, but there are definitely reasons to have significant cash savings and liquidity. Depending on age, risk tolerance, financial goals, etc.

Thanks for stopping by BM!

By: BrokeMillennial

BrokeMillennial — Thu, 25 Apr 2013 22:43:28 +0000

Great point sir, but I think we could take it even a step further and get that cash invested! Not that I’m a role model for investing, I have a long ways to go, but it’s important to do more than just have it in a savings account. BUT, I totally agree if the options are savings or checking, get the higher interest rate!

By: writing2reality

writing2reality — Mon, 25 Mar 2013 00:46:43 +0000

I agree, the low rates tend to keep things pretty limited in my checking and savings accounts as well. That being said, you have the advantage of some serious monthly and quarterly cash flow from your dividends that most beginner investors or non-investors don’t have. My main point is that I’d rather people put the excess reserve cash in a savings account earning some interest as opposed to a checking account that is earning nothing.

By: Integrator

Integrator — Sun, 24 Mar 2013 17:24:24 +0000

I tend to keep minimal funds in a savings or checking account. I’m much more focussed on quickly deploying excess funds into my investment portfolio. The low rates of return just don’t make it so worthwhile to keep excess funds in savings or checking accounts in my view. I use my dividend income as a hedge for emergencies etc.

By: writing2reality

writing2reality — Sun, 17 Mar 2013 04:59:45 +0000

It is utterly and totally unbelievable the complete lack of financial education in schools today! I actually had zero financial education in school and believe that major improvements in the education system would pay huge dividends!

Entitlement is certainly a sore subject for me as well. Truly a sad situation that has been created in this country.

Glad you like the picture! One of my friends is the source of most of these nicer shots on the site, this one included.

By: Mr. 1500

Mr. 1500 — Sat, 16 Mar 2013 14:08:22 +0000

“We have the poor combination of a terrible education system and a culture of entitlement that supports this general lack of knowledge.”

Oh man, you struck a chord with me. Our financial education is non-existent or terrible. Mine consisted of one semester of consumer education in high school. It covered stuff like comparing prices on cans of beans at the grocery store. Not good.

And don’t even get me started on the topic of entitlement. Grrrrrr.

Also, love the picture of the Jefferson Memorial. He was one of the greatest thinkers and one of my heroes.

By: writing2reality

writing2reality — Wed, 13 Mar 2013 20:36:57 +0000

I agree that you don’t want to have the money tied up with CD’s, nor do I ever advocate putting your emergency fund in CD’s unless you have a low withdrawal penalty. My main focus here is people with $25,000 sitting in a checking account earning nothing. Put that into a “high-yield” (laughable these days) savings account where you will at least have some hedge against inflation.

By: brickbybrickinvesting2012

brickbybrickinvesting2012 — Wed, 13 Mar 2013 19:13:05 +0000

I agree, not worth locking up the money at all. I’d much rather have an abundant emergency fund on hand for a stock market correction.

By: JC @ Passive-Income-Pursuit

JC @ Passive-Income-Pursuit — Wed, 13 Mar 2013 15:07:19 +0000

If you get a full year’s worth of emergency fund it’s even more important to figure out another way than just parking it in a checking or savings account. In more normal interest rates times, I’ll be swapping it over to a cd ladder, but for now the small extra % you can get with cd’s isn’t worth locking the money up.