3 thoughts on “It’s Only a Dollar…

  1. I like charts like this. I was always fascinated as a kid with those charts about how much you’d save if you don’t smoke.

    I also can’t help but think that after you get the $3k, you should invest that in the stock market. The S&P500 grows about 8% a year on average, which is much better than earning .4% in a savings account…

    • I agree. I’m a proponent of saving and having cash on hand for emergencies, and as the savings amount grows, investing the amount above the cash-on-hand amount. Without the cash-on-hand amount (which I call the cushion amount), when an unexpected car repair or other expense comes along, we have to withdraw from longer term savings. The cushion amount acts as a buffer to keep our invested monies growing.

      • Yeah, everyone has different amounts they’re comfortable with having as an emergency fund. Beyond that there are ‘sink funds’, which I like your term ‘cushion amount’ more. Since it’s for those expenses that aren’t true emergencies, just unexpected.

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