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Honored Advisor


Do you save $$$$?  How? 


I have this feeling that there are very few incentives to save, yet this may be one of those times ahead where it will be most beneficial.


how do you feel about it...?

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4 Replies
BA Deere
Honored Advisor

Re: Savings

I would save $$$, but spending it is so darned much fun  Smiley Very Happy    Back in the 80`s with 20% interest, I didn`t borrow a dime, I thought someone borrowing at that rate is nuts, there is no way that they can borrow a dollar and do something that`s legal and be able to pay back $1.20 at the end of the year and I still think I`m right about that.


The past few glorious years when taxes have become an issue and 3.5% interest rates they were basically paying you to take their money and saving money getting a 1% return is a sucker`s game.  However, maybe the pendulum is starting to swing back towards there not being anything you can legally do to pay interest rates.  Not necessarily because they are high but with below cost of production prices, you can`t make money with even nearly free money.


Robert Kiyoaki doesn`t believe in saving money, he believes in investing and making your money work for you and that`s kind of every farmers philosophy.


Red Steele
Veteran Advisor

Re: Savings

well, if the system is so broken that cash is not allowed to be king as part of the business cycle, it's all over.


Any student of how a free market capitalistic system works knows that you have to periodically have a shakeout where those that don't efficiently use capital are forced to sell to those that do.


I know that it's a brutal concept, but it is why even the poor in America have cell phones, obesity problems,  and big flatscreen TV's. Capitalism produces results if left to work it's magic.


Sure, I am saving money right now as those times are coming as the country gets more and more conservative, in spite of what you would read in the local MSM newspaper, and inspite of efforts (remember bank bailouts, GM bailouts, etc) to not let the system work. Seems like there was something like that in agriculture in the 1980's, too...remember when the word was that if you let the big guys fail, people would be starving to death cause they would not be able to get the land farmed?


And in 1980, who would have dreamed that saved money would be worth so much by the end of the decade?

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Honored Advisor

Re: Savings

I have to say I fall somewhere in between on that philosophy.  We aim for enough cash on hand to bridge a two-year gap in income.  I think we are well beyond that level now, even with some shifts out of savings in the past three years.  (Suze Orman recommends six months, unless she's gotten more conservative.) 


At our age (61.5), we neither one want to contemplate going off to work for a paycheck with the public.  We can trip and fall into Mike's railroad retirement from here, and that and rental income would keep us fed.  Of course, the longer we wait, the better RRRetirement pays us.  Already eligible to draw on Roths, but in no rush yet. 


We have also invested in cutting costs of living.  It took some cash out of savings, but we are finally heating everywhere with wood now.  One main cost cutter for us is having an HSA, and carrying cheaper health premiums, but that forces us to stash $7250 a year in that account.  Still , it is our money, not just handed over monthly to BCBS.


We were trusting too much into cash savings until three years ago, and invested in rental income-producing real estate and a new livestock venture and associated equipment.  We have one house that pays all of our insurance and taxes on all the farms and houses we own in VA now.  It and another one each pay us about 1/3 of their  original purchase price every year.


I am kind of glad to be a bit more diversified than we were in say 2010. 

Re: Savings

We save money.  It's good to have some cash on hand.

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