Comments on: what if saving was stupid

By: Shane

Shane — Tue, 07 Apr 2009 20:28:26 +0000

Good point, you can work around this though by saving money up, and every half year, take a large chunk to apply to the principle. That way you will always have the emergency money, and still be paying down.

But honestly, you shouldn't be paying down your house anyway unless you have a well established emergency fund.

When I think of saving money, I don't think about how much I'm going to make off it, I think about being financially prepared for the unexpected. Investing is where you make the money and should be concerned about earning more than the rate of inflation.

By: Shane

Shane — Tue, 07 Apr 2009 13:28:26 +0000

By: Should I Pay Off My Mortgage? | Frugal Dad

Should I Pay Off My Mortgage? | Frugal Dad — Tue, 24 Feb 2009 11:01:18 +0000

[...] is basically what Steve was alluding to in a post that caught my eye some time ago, “What If Saving Was Stupid?” One of the more profound statements was that “money in the market isn’t saved – [...]

By: streammx

streammx — Mon, 29 Dec 2008 05:57:33 +0000

It is so important to be saving money. While no one likes to think about the possibility that they will lose their job, become disabled, or have some other sort of disastrous financial crisis, the fact of the matter is that it happens to people all of the time.

By: streamalliance

streamalliance — Mon, 29 Dec 2008 05:53:54 +0000

The costs for private and public education are rising every year, and it's getting tougher to meet these demands. So, we must save money and deposit in good banks.

By: China Market

China Market — Mon, 29 Dec 2008 05:44:23 +0000

We'll need money set aside for Emergency cushion,Retirement etc.These emergencies to avoid going into debt to pay for what we need .

By: Lindsay

Lindsay — Mon, 29 Dec 2008 04:39:13 +0000

Personally I'd rather invest my cash back into my business than save it, pay extra on my mortgage, or stick it on the stock market any day. I think the only folks who are going to survive and thrive if there is an economic crash are those who create or buy assets they can continue to profit from no matter what the monetary system looks like (real estate, business, intellectual property, etc.).

Regarding the pay-off-the-mortgage-quicker scenario… If you believe inflation, or even hyperinflation, is the future, then all your debts will be paid off for you as the dollar is worth less and less anyway, so if your home loan is at a good rate, what's the hurry? Plow some money into building up your alternative income wealth streams

By: Weekend Roundup- Quick Holiday Edition | Think Your Way to Wealth

Weekend Roundup- Quick Holiday Edition | Think Your Way to Wealth — Mon, 29 Dec 2008 04:11:42 +0000

[...] What if saving was stupid? at Bripblap [...]

By: Weekend Link Love And Carnival Roundup - Amateur Asset Allocator

Weekend Link Love And Carnival Roundup - Amateur Asset Allocator — Sat, 27 Dec 2008 21:59:37 +0000

[...] Brap asks, What If Saving Was Stupid? He raises a good point: Soviet citizens thought “nothing that bad could ever happen [...]

By: bripblap

bripblap — Sat, 27 Dec 2008 13:51:32 +0000

Stephen, that's a good point – the “money is gone forever” argument doesn't really work, since (usually) homeowners can use a HELOC to get that equity back out if they need to. The terms are probably worse, and therefore the paying-early strategy isn't worth much if you have to get money back out through a HELOC, but if you use it as you describe, as a “just in case” fund, then it's a very valid point.