4 ms·

So much complicated advice in this thread, wow. Keep it simple: do things that let you accumulate cash, so if you lose your job you won't also immediately get

by davedx 5y ago

So much complicated advice in this thread, wow. Keep it simple: do things that let you accumulate cash, so if you lose your job you won't also immediately get kicked out of your house and you'll have reserves to draw on. Consider that you might need to re-train etc. Just build your savings. Don't do risky things that add to the complexity and your stress levels. Avoid crypto in particular. I also have a family and I've been building cash. Also: ignore people who tell you cash is bad because of inflation. Inflation is an effect that's known. Risks of various investments are combinations of "can be known" and "unknowable". Cash is king!

ianai 5y ago
And the traditional, near-cash liquidity hedges like precious metals already follow inflation. No need to dabble into such risky things as crypto.
- davedx 5y ago
  What do you mean "follow inflation"? Gold certainly hasn't tracked inflation
adhoc_slime 5y ago
I'm not trying to be to mean when I say this but this is advice to be scared. Risk is something we all manage in our daily lives, We know the risk of inflation, yeah so we also know that just building a savings barely keeps you afloat from you throwing away %1-4 of your savings every year due to inflation. where I live (Canada) my basic savings accounts only have %1.85 interest. Yeah there's risk in investing too, we all know that as well, but what level of risk is it that you should really afraid of? should I be afraid of investing in 3M, coca cola or how about a brand-new psychedelics/cannabis stock? Yeah probably for the latter, but you can even manage risk associated to that. One risk we all don't like to think about is that our employers will let us go and we'll be out on the streets. My point is, you can know your risks, understand and manage them. Watch your assets column so that something you think is an asset doesn't turn into a liability(something that doesn't generate profit), you want to be able to rely on a lot of factors for wealth generation because a wide array or complex risk can actually be better than single points of failure like trusting you will have / be able to find a job, that that crypto you put your life savings in won't be rug pulled, that the stock market won't crash. Last piece of advice is to know what you can live on, if I lost my job today, what would be left in my assets column and how long a run way would I have if I could rely on my saving and the rest of my assets.
le-hu 5y ago
what if i live in Poland and 11% inflation eats more of my cash than i can accumulate each year? Interest rates are at sky high 3% after 2nd raise this year. Goverment knows that and just wants to ruin people economically.

by davedx 5y ago

ianai 5y ago

And the traditional, near-cash liquidity hedges like precious metals already follow inflation. No need to dabble into such risky things as crypto.

davedx 5y ago
What do you mean "follow inflation"? Gold certainly hasn't tracked inflation

adhoc_slime 5y ago

I'm not trying to be to mean when I say this but this is advice to be scared. Risk is something we all manage in our daily lives, We know the risk of inflation, yeah so we also know that just building a savings barely keeps you afloat from you throwing away %1-4 of your savings every year due to inflation. where I live (Canada) my basic savings accounts only have %1.85 interest. Yeah there's risk in investing too, we all know that as well, but what level of risk is it that you should really afraid of? should I be afraid of investing in 3M, coca cola or how about a brand-new psychedelics/cannabis stock? Yeah probably for the latter, but you can even manage risk associated to that. One risk we all don't like to think about is that our employers will let us go and we'll be out on the streets. My point is, you can know your risks, understand and manage them. Watch your assets column so that something you think is an asset doesn't turn into a liability(something that doesn't generate profit), you want to be able to rely on a lot of factors for wealth generation because a wide array or complex risk can actually be better than single points of failure like trusting you will have / be able to find a job, that that crypto you put your life savings in won't be rug pulled, that the stock market won't crash. Last piece of advice is to know what you can live on, if I lost my job today, what would be left in my assets column and how long a run way would I have if I could rely on my saving and the rest of my assets.

le-hu 5y ago

what if i live in Poland and 11% inflation eats more of my cash than i can accumulate each year? Interest rates are at sky high 3% after 2nd raise this year. Goverment knows that and just wants to ruin people economically.