Cash Is King | Why I Keep So Much Cash

In this video, I'm going to talk about the importance of cash and why I like to keep a lot of it on hand. It's a strategy that a lot of investors use, and it can be really effective in protecting your portfolio during tough times.

Timecodes:

0:00 - Intro
0:33 - Cash Keeps You In The Game
1:50 - Cash Buys Opportunities
2:54 - Where to Hold Cash?
5:03 - Cash Gives You Peace
6:14 - Cash Keeps You Out of Debt
7:44 - Cash Gives You Time...To Think

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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

[sasukesuite]

Personally have a 3 year emergency fund and I just feel so at peace. My boss has complained that I’m not working fast enough recently, but I really don’t care if I get fired. 3 years is plenty of time to find another job.

[kitnoCC]

I agree! The peace of mind is by far the best part of having cash.

"If it costs you your peace, it's too expensive"

[artistjjebsen]

Great advice. So many ‘experts’ preach the opposite. Accessible cash is comforting. Money doesn’t always have to work for you. It can be a nice warm security blanket.

[johnmaddern]

I believe in keeping a large cash emergency fund, I bought my cottage and car with cash and it gave me large discounts on both

[ninajohnson]

After saving for years I just had a crumbling dangerous shower redone. When we opened the walls black mold was everywhere. The project doubled. I had more than enough cash to get mold mitigation, complete rebuild and the shower redone safely. Cash has always been Queen for me😉

[standartne]

I fully agree with you guys! I also kept a significant amount of cash on my account when I sold my property and the inflation during Covid years made me very nervous. But in a long term, it allowed me to buy another property that was rare to find on the market and now it allowed me to stay at home when I lost a job and to invest the time in a family and self-development while keeping my sleep calm.

[hlub]

I totally agree with you. Having more money at my disposal does give me peace of mind. Won't need to borrow from family members or the bank. Hate paying interest to the banks.

[happylife]

Omg we have the same experience where my parents stayed with us for 10 years to help with our 2 boys, so my husband and I can save money and reach our career goals. Love that piece of culture. My parents just moved back to the home country, and they said they have started their official retirement. Thanks to both sides of our Chinese parents to help us reach our financial goals too in our late 30s .

[lailaatallah]

Tae, I love your take on this. I’ve especially never thought about cash buying me time and the ability to take the time to reflect, research, confer and make reasoned decisions.

[jgtdragon]

Very clear and I totally agree. For me, I need to have cash available because of my rental properties, when repairs come, it comes in handy.

[uf]

Im getting 4.45% on my citi savings account. That's where i keep all my liquid cash! After 401k and my HSA all remaining goes to citi savings and with zero debt that can be quite high each Month! Plan on retiring in 3 years at 62. Thanks for sharing and you have a new subscriber!

[ytang]

this is a very important video, and one of my favourite on money management. To keep liquid cash always worked for me, and yet I noticed lot of people don't like the idea.
it gives you so much peace, forget the minimal interest, and the time to think is invaluable. It really is an adult security blanket.
thank you for your work.

[taimalik]

Whoever thinks cash is trash belongs in one! Excellent advice as always, sir!

[nicpollifrone]

Completely agree… on all points! With the rising rates, we savers are finally benefiting a bit with high yield savings accounts at 3-4%. It’s an added bonus to the security.

[Being_Joe]

Q1 2024 I have had to spend $5k on vet bills between my two dogs. Having access to cash makes me not even think about it.

[carrrrrrrlos]

Great info and excellent channel, Tae. Thanks and keep up the good work.

[ccw]

Great points! Esp about potential parental care!

[raiden]

I disagree on CDs. You divide up and stagger the cds (a ladder) so they mature at different times. I also think young people should invest more to take advantage of time in the market

[DionTalkFinancialFreedom]

Reserves scale with the size of my portfolio.
And I increased it when I retired.
It’s the money above that amount I want working hard.

[thomaschew]

I try to think of our cash savings as part of our overall portfolio. We lose a little bit of return in exchange for liquidity. And although our cash is in a high interest savings account and certainly "liquid" it takes about 6 days for a transfer so that gives a time buffer to think through things. We also keep a checkbook buffer of one and a half months expenses at our fingertips and for the last 7 years that has allowed us to avoid pulling from our emergency fund or going into debt.