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I am saving, but keeping it liquid. I save about 50% of my net income--which, as a mid-level software developer, is good money. Therefore, I can invest in mysel
by billpaetzke 16y ago
I am saving, but keeping it liquid. I save about 50% of my net income--which, as a mid-level software developer, is good money. Therefore, I can invest in myself now (or soon)--for example, starting a business. I'm not sure how much of my savings I'll need to start a business. But I'm a pretty conservative spender, so I'm not worried.
I'm going to make it happen. Somehow.
I understand that everyone's financial situation and aspirations are different. YMMV.
- loganfrederick 16y agoThis is the strategy I'll be taking, although I'm 20 and have little to save as is. If there's a bout of deflation or price/asset decline, keeping money in savings as opposed to 401(k) assets could earn a much better real return. The only reason people don't normally think of this is because this normally doesn't occur.
- dtegart 16y agoBut there are significant tax savings when using a 401K or IRA, which combined with the long term makes it quite unlikely that savings will out perform.
- natrius 16y agoPlus, you can probably put currency funds into a retirement account. I think that would function the same as holding cash, but I haven't completely thought through it.
- roel_v 16y agoBetting on deflation as the path to riches seems to be hardly a prudent strategy, let alone one to bet your retirement on. Yes I 'could' get a great return on investment if I buy that painting in the garage sale of my neighbor and it turns out to be a Monet, that doesn't make it a wise investment.