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Yeah I’d rather hold assets for anything I don’t have a possibility of immediately needing. Even with more volatile assets like stocks, generally I can expect t
by jrsj 5y ago
Yeah I’d rather hold assets for anything I don’t have a possibility of immediately needing. Even with more volatile assets like stocks, generally I can expect that it will be worth more at some point in the not too distant future than today, whereas cash is always worth less.
As a result I intentionally have 0 cash savings. Enough to live on for 2-3 months in my checking account, plus I have available credit for emergencies, everything else goes into assets I can expect to appreciate in high single digits worst case. If anything I feel like most people have a much less aggressive allocation than they can probably afford to (although I also have little debt, just a car loan, and a relatively low cost of living which makes this easier)
- CheezeIt 5y agoYes, with credit cards, there’s little reason to keep money in checking unless you have a low credit limit. I hold physical cash for real tail risk, and you can always deposit that if need be.
- tmn 5y agoJust as you expect your asset to be worth more at some point in the future, you can expect your cash to worth less at some point in the future. These follow from each other. To say the cash is always worth less is not coherent with your stated asset model.