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Reposting my comment to another commenter: A 40 is not liquid - if something happens and you need money tomorrow yo don't have immediate access to those funds.

Reposting my comment to another commenter: A 40 is not liquid - if something happens and you need money tomorrow yo don't have immediate access to those funds. There may also be heavy fees if you pull funds out before you are 60.

wil421 11y ago
That is true but why should I let the bank make all the money off my savings? If I were to lose my job today I could easily find a bartending job like I did in college to support myself in the time it takes to find a new job. My situation may be different than a lot of people and I live in a large city. If I had 15k in savings to buy a house in two years I could put 10k into a CD and still make something like $300. The 5k could be for emergencies and the 10k is still more liquid than a 401k.
- bmj 11y ago
  f I were to lose my job today I could easily find a bartending job like I did in college to support myself in the time it takes to find a new job. My situation may be different than a lot of people and I live in a large city. This is not an option for a lot of people, particularly those with families. That said, your follow-up makes sense, and I've typically done something similar.
  - nommm-nommm 11y ago
    Don't count on the fact that a bartending job will always be easy to come by just because it once was. Back in 2008 any job (even fast food) was hard to come by in my area.
- agentgt 11y ago
  The savings account (liquid emergency cash account) is sort of like life insurance. It depends on how risk averse you are and lifestyle. For example if you are older and have a family (ie kids) and a more expensive lifestyle you might want to have more cash on hand. This is similar to life insurance where if your young and have no kids there is really little reason to get it. There are many times in my life I have had less $1000.00. Regardless less than $1000.00 on hand for emergency for the majority is disturbing.

wil421 11y ago

That is true but why should I let the bank make all the money off my savings? If I were to lose my job today I could easily find a bartending job like I did in college to support myself in the time it takes to find a new job. My situation may be different than a lot of people and I live in a large city. If I had 15k in savings to buy a house in two years I could put 10k into a CD and still make something like $300. The 5k could be for emergencies and the 10k is still more liquid than a 401k.

bmj 11y ago
f I were to lose my job today I could easily find a bartending job like I did in college to support myself in the time it takes to find a new job. My situation may be different than a lot of people and I live in a large city. This is not an option for a lot of people, particularly those with families. That said, your follow-up makes sense, and I've typically done something similar.
- nommm-nommm 11y ago
  Don't count on the fact that a bartending job will always be easy to come by just because it once was. Back in 2008 any job (even fast food) was hard to come by in my area.
agentgt 11y ago
The savings account (liquid emergency cash account) is sort of like life insurance. It depends on how risk averse you are and lifestyle. For example if you are older and have a family (ie kids) and a more expensive lifestyle you might want to have more cash on hand. This is similar to life insurance where if your young and have no kids there is really little reason to get it. There are many times in my life I have had less $1000.00. Regardless less than $1000.00 on hand for emergency for the majority is disturbing.