Keeping large amounts of cash in the bank is not a very smart financial move. Due to inflation, you’re effectively losing money. You should have enough cash to get you through a crisis without needing to touch your investments, but the rest should be put into low-cost index funds, for example. I “earn” more from interest each year than the vast majority of people can save from their wages. In my opinion, working-class people can’t afford to miss out on the phenomenon of compounding interest. That should be taught in schools. Other than owning a house, it’s basically the only other way to generate a significant amount of wealth.
Tarquinn2049@lemmy.world 2 months ago
This thread is about feeling like we already have enough money, lol. Yes, they taught us about compound interest in school. I know I could be making more money, but I don’t want more money, I want my money to just be sitting there so I don’t have to worry about it. My dad is always so stressed out because he never has any money on hand, it’s always tied up in stuff and he has to constantly micromanage everything. I’m sure he has more money than he would have if he wasn’t doing that… but it certainly isn’t the “passive” income he claims it is. It’s more work than his actual job, and the stress is costing him years off his life on top of the time it already costs to manage it all.
I have enough money. More money would be a waste. I don’t want to do even a fraction of what he does, it can just sit there and I can just chill. I like my life.
Thorny_Insight@lemm.ee 2 months ago
He’s not a passive investor then. That is not the recommended style for normal people, it’s effectively gambling. My investing requires zero managing. I set it up once and haven’t touched it since. It automatically buys more shares each month and never sells anything. If the market crashes tomorrow I’m not doing anything differently.
Tarquinn2049@lemmy.world 2 months ago
Sounds good. That is a reasonable cost for the peace of mind.