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Right, because the SUCKERS like me who spend far less than they earn and keep their money in a savings account with the highest interest rate they can find (at

Right, because the SUCKERS like me who spend far less than they earn and keep their money in a savings account with the highest interest rate they can find (at essentially NO risk) were hurt so badly last time the economy crashed. Right?

josefresco 17y ago
Which is better, to live wealthy with high risk or to live poorly with little risk? Sure you can make out good when the economy crashes (which is rare) but in the meantime (while things are good) those taking high risks are sure enjoying themselves. Remember; it's just money, you can always make more, try to enjoy yourself a little bit while you have it and don't wall yourself off from the world just to keep what little (or a lot) you may have.
- donw 17y ago
  Having a savings account lets you do some really amazing things, though. I quit my full-time job as of last Friday (although they retained me as a consultant for part-time remote work), and will spending the next year or two (a) focusing on my new company, and (b) traveling. Having the freedom to make that happen, especially when nearly everybody around me is burdened by debt, is incredibly valuable. I couldn't do this if I had spent all my money on 'enjoying' myself all the time. True, you shouldn't wall yourself off from the world, but at the same time, spending every penny you earn, when you earn it, is just folly.
  - kirubakaran 17y ago
    Congratulations and all the best!
    - donw 17y ago
      Thanks!
- MikeCapone 17y ago
  Money is freedom. Having money in the bank is freedom. Spending lots of money is the opposite of freedom, at least for me. I'm glad I have small expenses and monthly payments, because I value my financial security and freedom a lot more than shiny gadgets. It might be a cliché, but I'd rather not become a slave to the things I own.
mikebo 17y ago
I agree with your sentiment. I also keep quite a bit of money in cash, but these days I'm keeping less so since it seems likely we'll have high inflation in our future, given how much money is being printed. I've moved most of it to gold or silver.
- jrockway 17y ago
  Gold seems to continue to drop in price, even as we print paper money. It's possible that debt is more valuable than yellow-colored metal coins. (Gold does not have a lot more intrinsic value than anything else. If the economy collapses, will people be willing to buy your chunks of metal? Why?)
  - kingkongreveng_ 17y ago
    > Gold seems to continue to drop in price Huh? Gold (and commodity metals in general) has been the trade of the decade. > Gold does not have a lot more intrinsic value than anything else. You can go any time in history any where in the world and buy a decent suit with an ounce of gold. Gold has always preserved wealth in the long run. Not true of any other asset class. Everybody should be at least a few percent in gold. It's cheap catastrophe insurance.
    - jrockway 17y ago
      Past performance is not indicative of future returns.
      - ianferrel 17y ago
        But it's the best guide we've got.
  - chollida1 17y ago
    > Gold seems to continue to drop in price, even as we print paper money. In the real world it's done the opposite. Golds gone up in value as we've printed more money.
jrockway 17y ago
Exactly. ING Direct has an ad that shows up when you log in that says, "There's no such thing as saver's remorse." So true. If you decide you are not happy with your return on investment of a savings account, you can always move the money somewhere else. Once you've lost all your money buying whatever security Mad Money tells you to buy, you aren't getting it back. Personally, I have done well with a S&P500 index fund. But I still like to have a big chunk of money immediately available, so if I need the money I can get at it without worrying that today is a "down day". (People will argue that this is a waste, because inflation outpaces whatever you earn from interest, but this is not entirely true. Other people will enter into similar "money-losing" agreements with me; my rent will cost the same number of dollars every month for 2 years. So while I'm technically losing money, I still have the ability to pay for the same stuff. Compared to actually losing money by buying into whatever fad is popular today, I prefer this one...)

josefresco 17y ago

Which is better, to live wealthy with high risk or to live poorly with little risk? Sure you can make out good when the economy crashes (which is rare) but in the meantime (while things are good) those taking high risks are sure enjoying themselves. Remember; it's just money, you can always make more, try to enjoy yourself a little bit while you have it and don't wall yourself off from the world just to keep what little (or a lot) you may have.

donw 17y ago
Having a savings account lets you do some really amazing things, though. I quit my full-time job as of last Friday (although they retained me as a consultant for part-time remote work), and will spending the next year or two (a) focusing on my new company, and (b) traveling. Having the freedom to make that happen, especially when nearly everybody around me is burdened by debt, is incredibly valuable. I couldn't do this if I had spent all my money on 'enjoying' myself all the time. True, you shouldn't wall yourself off from the world, but at the same time, spending every penny you earn, when you earn it, is just folly.
- kirubakaran 17y ago
  Congratulations and all the best!
  - donw 17y ago
    Thanks!
MikeCapone 17y ago
Money is freedom. Having money in the bank is freedom. Spending lots of money is the opposite of freedom, at least for me. I'm glad I have small expenses and monthly payments, because I value my financial security and freedom a lot more than shiny gadgets. It might be a cliché, but I'd rather not become a slave to the things I own.

mikebo 17y ago

I agree with your sentiment. I also keep quite a bit of money in cash, but these days I'm keeping less so since it seems likely we'll have high inflation in our future, given how much money is being printed. I've moved most of it to gold or silver.

jrockway 17y ago
Gold seems to continue to drop in price, even as we print paper money. It's possible that debt is more valuable than yellow-colored metal coins. (Gold does not have a lot more intrinsic value than anything else. If the economy collapses, will people be willing to buy your chunks of metal? Why?)
- kingkongreveng_ 17y ago
  > Gold seems to continue to drop in price Huh? Gold (and commodity metals in general) has been the trade of the decade. > Gold does not have a lot more intrinsic value than anything else. You can go any time in history any where in the world and buy a decent suit with an ounce of gold. Gold has always preserved wealth in the long run. Not true of any other asset class. Everybody should be at least a few percent in gold. It's cheap catastrophe insurance.
  - jrockway 17y ago
    Past performance is not indicative of future returns.
    - ianferrel 17y ago
      But it's the best guide we've got.
- chollida1 17y ago
  > Gold seems to continue to drop in price, even as we print paper money. In the real world it's done the opposite. Golds gone up in value as we've printed more money.

jrockway 17y ago

Exactly. ING Direct has an ad that shows up when you log in that says, "There's no such thing as saver's remorse." So true. If you decide you are not happy with your return on investment of a savings account, you can always move the money somewhere else. Once you've lost all your money buying whatever security Mad Money tells you to buy, you aren't getting it back. Personally, I have done well with a S&P500 index fund. But I still like to have a big chunk of money immediately available, so if I need the money I can get at it without worrying that today is a "down day". (People will argue that this is a waste, because inflation outpaces whatever you earn from interest, but this is not entirely true. Other people will enter into similar "money-losing" agreements with me; my rent will cost the same number of dollars every month for 2 years. So while I'm technically losing money, I still have the ability to pay for the same stuff. Compared to actually losing money by buying into whatever fad is popular today, I prefer this one...)