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The practical difference is that the retirement funds are one-way while the rainy day fund is potentially two-way. The rainy day fund is in a liquid investment in case I lose my job or I stupidly wrote a check from my normal account that's about to bounce. The bad thing about a liquid two way account is that some people may want to borrow money from you, in which case it's tough to give the excuse that none of your money is liquid (family political management is an interesting topic).
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Last edited by DanS; September 29, 2005, 12:18.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891 -
No. For the 401(k), I give a %-age, so that takes care of itself. I guess I could adjust the rainy day and other funds every 3 or 4 years. Or when my salary goes down, for instance.Think about this-- if you got a 10% raise tomorrow, would you think to automatically adjust some of the amounts?I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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OK-- In Canada all the retirement funds are two way although they subtract income tax on a withdrawal of funds.Originally posted by DanS
The practical difference is that the retirement funds are one-way while the rainy day fund is potentially two-way. The rainy day fund is in a liquid investment in case I lose my job or I stupidly wrote a check from my normal account that's about to bounce.
On losing a job, wouldn't your employer have to give you pay in lieu of notice??
A bouncy cheque is unlikely for me since I use my credit card for all major purchases. I think my last cheque was 4 or 5 months agoYou don't get to 300 losses without being a pretty exceptional goaltender.-- Ben Kenobi speaking of Roberto LuongoComment
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Similar in the US, but there's also a withdrawal penalty. So in my mind, it's more convenient to think of it as one way.OK-- In Canada all the retirement funds are two way although they subtract income tax on a withdrawal of funds.
No. Don't get me wrong. I'm not planning on getting fired, but you never know what will happen that's outside my employer's control.On losing a job, wouldn't your employer have to give you pay in lieu of notice??
It's unlikely for me too, since I only write one check a month. But wouldn't you know it, the rainy day fund saved my bacon on this about 9 months ago (Bad at math, profligate, unreliable...). I don't balance my checkbook, so it's still possible to do.A bouncy cheque is unlikely for me since I use my credit card for all major purchases. I think my last cheque was 4 or 5 months agoLast edited by DanS; September 29, 2005, 12:32.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Salaries go downOriginally posted by DanS
Or when my salary goes down, for instance.
Sorry-I know they do, but I am caught in a booming oil town where EVERYTHING is going up up up and the major problem is a lack of enough skilled people to keep up. heck I think many companies are now advertising internationally to try to meet their long term needsYou don't get to 300 losses without being a pretty exceptional goaltender.-- Ben Kenobi speaking of Roberto LuongoComment
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Hey, I oughta move to your oil town. Any six-figure USD salaries for spreadsheet monkeys like myself?
But in any event, salaries can go down by moving to a different job or in my case, less overtime.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Believe it or not, this bet mostly works. It worked for me. However, keep in mind that it will take you 10 to 15 years to pay off your cards, depending on your lifestyle. Took me 10 years.Originally posted by Shogun Gunner
deficit spend and don't worry about it. Your future income will "grow you out of debt"
No need to plan for natural disasters either.... everything will be fine.
It would have been preferable in hindsight to have somebody sit me down at age 5 and explain a couple of tricks to money management and to have a discussion about human nature with regard to money. But my mom and dad are from a different era where they placed a lot of stock in self control and not a lot in very long-term planning, so their thoughts on the matter are worse than useless.Last edited by DanS; September 29, 2005, 13:00.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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very easy to believe for an individual when they have the potential to double or triple their income in a year.Originally posted by DanS
Believe it or not, this bet mostly works.
I didn't get too far in the hole in school but it still took about 5 years. My current non-mortgage debt was actually ALL related to the house purchase and will disappear soonOriginally posted by DanS
However, keep in mind that it will take you 10 to 15 years to pay off your cards, depending on your lifestyle. Took me 10 years.
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I never had that talk but my parents were very careful money managers. At a pretty early age I got an allowance and learned to live on it. I think I learned intuitively that if people have money, they tend to spend it. I can recall leaving afew bucks in cash at home so I wouldn't spend it all on one nightOriginally posted by DanS
It would have preferable to have somebody sit me down and explain a couple of tricks to money management and to have a discussion about human nature with regard to money.You don't get to 300 losses without being a pretty exceptional goaltender.-- Ben Kenobi speaking of Roberto LuongoComment
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How does keeping your rainy day fund in buyandhold work? Don't you have to pay transaction fees and risk the ups and downs of the market? I keep my rainy day fund in an ING direct savings account.“It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”
― C.S. Lewis, The Abolition of ManComment
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The account sweeps to a money market fund fee-free, so there's extremely little risk. It's always liquid. If I get too have too much money in my rainy day fund (which would be great), I could always invest a portion in less liquid investments. It's a limited brokerage account, after all (you can't buy options or sell short).I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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I had to figure it out later in life. My dad is a wildcatter, so I had a more tactile feel for acceptable risk. But I had little understanding for human nature and the fact that money burns a whole in your pocket so thoroughly.Originally posted by Flubber
I never had that talk but my parents were very careful money managers. At a pretty early age I got an allowance and learned to live on it. I think I learned intuitively that if people have money, they tend to spend it. I can recall leaving afew bucks in cash at home so I wouldn't spend it all on one night
Yes, like a student.very easy to believe for an individual when they have the potential to double or triple their income in a year.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Not mine, thank God.Originally posted by DanS
But I had little understanding for human nature and the fact that money burns a whole in your pocket so thoroughly.
I hate spending money. It hurts me a little bit each time I buy something. I'm sometimes amazed at the things I'll do to save a buck.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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As a day-to-day matter, I like spending money. Lots of it. I might get buyer's remorse, but I still like spending the dough on all sorts of useless sh!t.
I'm getting better at this as time goes on and my system curbs my appetites. Saving is fun too, but for me it's an acquired taste.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Savings programs in which you commit to paying some of your money in an agreement to a bank is alos a good disciplinary move. As soon as I get a normal job, I am going to open one of those.Comment
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