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Discussion Starter · #1 ·
I'm trying to figure out other options than a savings account to store emergency living expenses in case of lost income. The 0.40% apy isn't gonna cut it I guess. What rate should I be shooting for to not lose value?

Where are others storing it?

I'd want it to be just as accessible as a savings account, should I need to draw from it.

Ideally it would at least not lose any value over time. Gaining value would be nice but rather not introduce too much risk. I have long term retirement accounts for that. Also hold some crypto but not comfortable using that for emergency funds.
 

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I'm trying to figure out other options than a savings account to store emergency living expenses in case of lost income. The 0.40% apy isn't gonna cut it I guess. What rate should I be shooting for to not lose value?

Where are others storing it?

I'd want it to be just as accessible as a savings account, should I need to draw from it.

Ideally it would at least not lose any value over time. Gaining value would be nice but rather not introduce too much risk. I have long term retirement accounts for that. Also hold some crypto but not comfortable using that for emergency funds.

I don't know if there's a solution that will keep up with inflation besides stocking up on what you will use and being ahead on your bills. Can you pay your phone, mortgage, car note for 2 years? Is it worthwhile to buy an extra freezer/refrigerator and stock up on food?

Dave Ramsey says it's either or and you really can't have both.

The question for you is when you say "emergency living expenses" is that your monthly budget x24 or is that bare minimum for 2 years? I know in a real emergency situation I'm not paying for cable or putting anything aside for vacations etc...
 

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off-grid organic farmer
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My grandparents [on both sides] were subsistence farmers before the Dust Bowl era. Later the banks locked their doors, seized all savings accounts, foreclosed on all mortgages and evicted the farmers off their farms.

My grandparents learned to NEVER leave money unattended in a bak.

Your money is safer in a mason jar buried under a rose bush.
 

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I don't like having all my eggs in one basket. 2 years is a lot of cash.
Personally, I keep 1/3 in cash, 1/3 in a money market account, and 1/3 in my credit union.
also have a bit in PM's.
I have a hidden safe at home for the cash and PM's.
 

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Discussion Starter · #5 ·
I don't know if there's a solution that will keep up with inflation besides stocking up on what you will use and being ahead on your bills. Can you pay your phone, mortgage, car note for 2 years? Is it worthwhile to buy an extra freezer/refrigerator and stock up on food?

Dave Ramsey says it's either or and you really can't have both.

The question for you is when you say "emergency living expenses" is that your monthly budget x24 or is that bare minimum for 2 years? I know in a real emergency situation I'm not paying for cable or putting anything aside for vacations etc...
Good points, and reducing the amount I need for two years by prepaying or having one or two years of supplies on hand is something I'm activity trying to do.

But ya, it's bare minimum to get by. Maybe I need to calculate how much I'd have to pay to keep emergency funds readily available. To me its kind if like insurance I guess.
 

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Discussion Starter · #6 ·
I don't like having all my eggs in one basket. 2 years is a lot of cash.
Personally, I keep 1/3 in cash, 1/3 in a money market account, and 1/3 in my credit union.
also have a bit in PM's.
I have a hidden safe at home for the cash and PM's.
That's a good idea too. I already like to keep an amount of cash hidden away at home. I might as well include that amount in my emergency savings, and add to it a little.
 

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I have long held my stash for sleep at night purposes in 5 year CDs. If I ever really needed the money, the early withdrawal penalty would be peanuts. For 20 years that has been a good way to go since I have consistently gotten much higher yields than short term instruments and I was generally willing to hop banks for the very best deal. I am now in the position of having stuff about to mature and have no good rates on offer. I am gradually shifting the long term pool to series I savings bonds. There is a 10k per SSN limit annually in new money, but they pay interest equal to the CPI and you pay no taxes on the interest until withdrawal. Whatever other funds will just go short term in an internet savings account while I wait for rates to rise or opportunities to present themselves. Will be writing college tuition checks soon, so I know where some of the cash will go.
 

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Discussion Starter · #8 ·
I have long held my stash for sleep at night purposes in 5 year CDs. If I ever really needed the money, the early withdrawal penalty would be peanuts. For 20 years that has been a good way to go since I have consistently gotten much higher yields than short term instruments and I was generally willing to hop banks for the very best deal. I am now in the position of having stuff about to mature and have no good rates on offer. I am gradually shifting the long term pool to series I savings bonds. There is a 10k per SSN limit annually in new money, but they pay interest equal to the CPI and you pay no taxes on the interest until withdrawal. Whatever other funds will just go short term in an internet savings account while I wait for rates to rise or opportunities to present themselves. Will be writing college tuition checks soon, so I know where some of the cash will go.
That was one route I was considering, CD. I'll check the fees for early withdrawal but seems the longer 5 year are worth it since the scenario of needing to draw money out for me is slim. A smaller chunk could be readily available in savings account and cash
 

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Like mentioned above, some in cash and some in bank. I personally think crypto, specifically Bitcoin is a great place to keep emergency funds…if not most of it. It’s fluid enough to retrieve or can even be transferred directly to pay for something. More and more businesses are accepting Bitcoin. I don’t think it’s going below 40k again (though I could be wrong)…more likely to go much higher. I don’t think the fluidity should be of the utmost importance for emergency savings. Most likely and hopefully you won’t even need the money. Best to grow that money if it’s just sitting
 

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That was one route I was considering, CD. I'll check the fees for early withdrawal but seems the longer 5 year are worth it since the scenario of needing to draw money out for me is slim. A smaller chunk could be readily available in savings account and cash
I don't currently find CD rates to be worth it right now. But if an when rates bounce, I will be ready once again.
 

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My grandparents [on both sides] were subsistence farmers before the Dust Bowl era. Later the banks locked their doors, seized all savings accounts, foreclosed on all mortgages and evicted the farmers off their farms.

My grandparents learned to NEVER leave money unattended in a bak.

Your money is safer in a mason jar buried under a rose bush.
living through hurricane sandy, all electricity was down for 13 days. if you needed to use a credit card or pop into a bank for cash, you were SOL. bury your cash in the back yard
 

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Discussion Starter · #14 ·
i agree with you. tying up my money for a lot of years without a lot of interest isnt worth it.
I can see that being the case for some situations but for me, I've gotten my monthly expenses down pretty low now and soon no debt. So the amount I need on hand for a years worth if living expenses is not so high. I won't share the exact amount, but a year for me is less than a new truck or SUV costs these days.

If I lose some money by not having put the funds somewhere else, that's fine since I see it as a form of insurance, which costs money. I'm not affecting my retirement savings by putting aside the two years of living expenses. People in my average neighborhood spend this amount every few years on a new car.

I think its also easier to make major decisions (financial, career, etc) if you know you are sitting on 2 years of living exp. Hard to put a price on that but over time it could help to come out further ahead just by being able to make smarter decisions.
 

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Discussion Starter · #15 ·
I don't currently find CD rates to be worth it right now. But if an when rates bounce, I will be ready once again.
I havnt really looked into CD, etc until recently. Would you mind sharing what minimum rate you think is worth it?
 

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I havnt really looked into CD, etc until recently. Would you mind sharing what minimum rate you think is worth it?
Maybe 3% for a 5 year term in a normal world. Today I would accept 2%, but I layer them so not everything matures at once.
 

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I'm trying to figure out other options than a savings account to store emergency living expenses in case of lost income. The 0.40% apy isn't gonna cut it I guess. What rate should I be shooting for to not lose value?

Where are others storing it?

I'd want it to be just as accessible as a savings account, should I need to draw from it.

Ideally it would at least not lose any value over time. Gaining value would be nice but rather not introduce too much risk. I have long term retirement accounts for that. Also hold some crypto but not comfortable using that for emergency funds.
If all the markets crashed today ... what would you need to have on hand to survive? Even gold/silver (as nice as they may be) won't feed your family or keep them warm or fire from your gun. So I always emphasize storing money is useable goods. What will YOU need and what will you be able to trade with your friends, neighbors, and family?
 

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If all the markets crashed today ... what would you need to have on hand to survive? Even gold/silver (as nice as they may be) won't feed your family or keep them warm or fire from your gun. So I always emphasize storing money is useable goods. What will YOU need and what will you be able to trade with your friends, neighbors, and family?
I`ve been stockpiling Barter items for years. I have several thousand dollars worth of 90% silver coins,large stash of Alcohol and various calibers of Ammo. All for Barter if it does take a dump. Ya just never know!.
 

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In correct proportions, I'd turn cash into goods that will retain or increase in value, barter-able or fairly liquid to sell in a hurry. I'd turn cash into property if possible. I'd turn cash into goods needed in the next 2 years, trying to forecast what you'll need (long-term food, canned goods, TP, dog food, etc.). And I'd keep some in accounts that are spread around and somewhat liquid while also accessible within 1 week if necessary.

In a pinch, I can raise money by either selling hard goods (guns, ammo {something reloaders are not able to easily do, FYI}, tools, oil, and heck even a whole car, I have so many).

I'm always hunting for ways to either trade/barter or generate extra money/assets in a side hustle. I recently bought a small warehouse worth of thousands of quarts of premium motor oils of various brands and weights for 10 cents per quart. I've sold some of it, and already far ahead and have paid for every ounce of oil I've ever bought in my life, and still have many lifetimes worth of oil to sell off... I can sell most of it off and still have enough motor oil to last most of the rest of my driving life, probably, assuming at 20 year shelf-life. And will make a lot of money/trades on it. I've already traded for a lot of ammunition, a freezer full of beef from a local farmer, and various services, and of course cash which I've turned into stuff I need. Here's just a sample of what I've acquired, and at this point it's all already paid for... and I have most of it left to sell/trade or use myself. Considering crude oil just jumped to $80/barrel, and oil is a top global commodity, this is a great investment. Look for similar scores.

Shelf Shelving Building Retail Publication
 

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PFF, or PFFA they are preferred stock ETFs. They pay a dividend every month. You can have those dividends reinvested thus compounding the return on a monthly basis.
 
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