How mush cash?

[plumber_greg]

I agree with AAron. Invest that cash in a few cows, pay for them. I can promise that 27k will return you more money that way than it ever would in savings. If you need money, simply take the cows to a local sale barn, here you could cash them in 4 days a week.

I have an aunt, in about 1980 she had saved around 200k in savings. Today she has around 250k. In 1980 the money was awesome to have that much. Nowwww, don't even know what the 3 kids that are gonna' split that money would do with it, not enough to do anything.

I also realize that self employed people like myself handle money differently. I mostly live off the gross. If I need 10k, I simply write a check out of the plumbing account. Next week it will be back in there. Now if I have bills to pay, I am big on paying them first, especially wharehouses, but I will be able to write the check next week, so I may pay an overdraft fee.

To me, liquid assets are way better than cash on hand. If your cows and the calves they will have aren't worth what you have in them, then enough other factors will come into play that your savings won't be worth anything either.

Granted, I have never in my life lived on a regular paycheck. gs

 

[herofan]

I would never have that much cash at hand at all times, just on principle. I'd rather invest it into physical goods that benefit me such as tools, machinery, cattle, etc. Problem with cash is that it is just paper and $5 today can be worth $1 tomorrow. I agree to stay out of major debt, but to just hoard cash is not benefiting you to any great extent, other than being the favorite family relation with the juicy inheritance in his will.

What would be a comfortable cash amount for you? I guess I'm always thinking about the rainy day.

My grandfather, for example, had a lot of medical issues in the latter part of his life; however, he had enough cash that paying for it was never an issue.

 

[kjonesel]

At the age of 55 I have come to realize credit is like alcohol. If used in moderation its okay. But it is very easy to become addicted too and eventually its effects are damaging.

 

[highgrit]

What would be a comfortable cash amount for you? I guess I'm always thinking about the rainy day.
My grandfather, for example, had a lot of medical issues in the latter part of his life; however, he had enough cash that paying for it was never an issue.[/quote]

Herofan, It's a shame that you don't have someone you can talk to about financial planning. The government and Medicare appreciate folks like you and your grandfather. There's ways to shield your property and assets in case you get sick.
Herofan, you have done well saving and living within your means. Everyone's after your money, and some will even cut your throat to get.

 

[Craig Miller]

Im not paycheck to paycheck but i dont have a lot saved. I dont save well. When i have extra i like to buy cows. That way its harder to spend that money. With all thats going on here ive spend almost all i had saved. The rainy day is here. Lol

 

[herofan]

What would be a comfortable cash amount for you? I guess I'm always thinking about the rainy day.
My grandfather, for example, had a lot of medical issues in the latter part of his life; however, he had enough cash that paying for it was never an issue.

Herofan, It's a shame that you don't have someone you can talk to about financial planning. The government and Medicare appreciate folks like you and your grandfather. There's ways to shield your property and assets in case you get sick.
Herofan, you have done well saving and living within your means. Everyone's after your money, and some will even cut your throat to get.[/quote]

I'm sure there are people around I could talk to. Who would be a good person; in other words, what would be their title?

 

[tom4018]

For us we keep some actual cash in the safe for an emergency. I guess you could say the rest of our emergency fund is in the bank in CD's which we could get to if needed, only pay a interest penalty. Which would be small with no more than it earns. We try to keep enough in a regular checking and savings to take care of normal things, do we have enough? I guess we get by.

I guess I am one of the guys since I bought a new disc mower this year. Man it was hard to buy, I did finance even though I could have paid cash as I did not want to deplete our reserves that much.

We have cattle that could be sold if need be, and really have thought about getting out of it. Maybe lease the farm but then again that is another topic.

Most of our money is invested in 401K and IRA's, believe me I wish we had more but we have what we have. We made our mistakes when younger and have learned some lessons. It really bothers me going anymore in debt, sat here many times in the last few weeks regretting the disc mower purchase.

I am fortunate to have a great paying job, sure it could be gone tomorrow and would really put us in a downhill slide. We could make it a while but it would be scary. I feel we are better off than the average person is though.

You sound like you have done well. Do what you feel is right for you and don't let what others do bother you.

 

[HDRider]

What would be a comfortable cash amount for you? I guess I'm always thinking about the rainy day.
My grandfather, for example, had a lot of medical issues in the latter part of his life; however, he had enough cash that paying for it was never an issue.

Herofan, It's a shame that you don't have someone you can talk to about financial planning. The government and Medicare appreciate folks like you and your grandfather. There's ways to shield your property and assets in case you get sick.
Herofan, you have done well saving and living within your means. Everyone's after your money, and some will even cut your throat to get.

I'm sure there are people around I could talk to. Who would be a good person; in other words, what would be their title?

Do you have an accountant? If so, start there. If not, find one, based on the recommendation of people you trust. Have them put a plan together you agree with and understand. Understand being the key word.

Blindly seeking a financial adviser is just that, flying blind. Everyone thinks their adviser is the best. I am sure your gut has served you well. Trust your gut, and the advice of trusted friends, key word trusted.

A certain amount of liquidity is good. Others can speak to just how liquid cows are. The liquidity of hard assets changes too, up or down, and ease of sale fluctuates too.

 

[John SD]

....... I know a lot of folks with multiple vehicles, a camper trailer, a big a$$ 4 wheeler and a deer lease and live in a mobile home. All they do is make payments and save enough every month to pay the deer lease next month.........

Sounds like the makin's of a reality TV series depicting our county.

Last week I was at the co-op tire shop to get a wheel bearing replaced on my pickup. Observed some of the folks who came in. One couple had a mid-2000's Chevy Impala. Decent looking car. Needed a pair of new tires. Had a flat that morning so they came in on the donut spare.

The flat tire he rolled in was severely worn on one side, likely the cause of the flat. The people were headed on their way to the big city. Shop had time to change the tires but the alignment guy was busy until afternoon. So they planned to go and come back for alignment later. Don't know how many miles they would have ground off those new tires before they got back with it.

I assumed lack of money was the cause that the alignment problem wasn't corrected sooner. This couple, she was big as a house and he was a dried up little guy. Both with facial piercings and tattoos everywhere. Looks like they have cash to paint and install graffitti on their bodies, but not enough to provide for basic necessities such as normal wear and maintenance of their transportation :roll:

 

[herofan]

What would be a comfortable cash amount for you? I guess I'm always thinking about the rainy day.
My grandfather, for example, had a lot of medical issues in the latter part of his life; however, he had enough cash that paying for it was never an issue.

Herofan, It's a shame that you don't have someone you can talk to about financial planning. The government and Medicare appreciate folks like you and your grandfather. There's ways to shield your property and assets in case you get sick.
Herofan, you have done well saving and living within your means. Everyone's after your money, and some will even cut your throat to get.

I'm sure there are people around I could talk to. Who would be a good person; in other words, what would be their title?[/quote]

What are some examples of how you manage your money. Do you invest in stock market, 401k, some in the bank, etc. I read that some have no debt, so i assume a great deal of cash must have been present at one point if they bought a vehicle or any equipment.

 

[herofan]

First a divorce and then the real estate plunge sucked me dry. (Ex got half my retirement.) I had to start over in my 40s. (No fun.) But I do fine. I have a good stable income and a good life.

I had a divorce in the 40s too. I traded a lot of current stuff in order to keep my retirement. She got a bigger chunk of the house and such, and I keep my retirement. It's no fun, but I'm happy with that deal.

 

[Rafter S]

The government and Medicare appreciate folks like you and your grandfather. There's ways to shield your property and assets in case you get sick.

Highgrit,

Would you explain a little more about what you mean by that? It sounds like you're suggesting that it's okay to hide assets so Medicare (or some other government entity) will pay your medical or long -term care bills.

 

[John SD]

What are some examples of how you manage your money. Do you invest in stock market, 401k, some in the bank, etc. I read that some have no debt, so i assume a great deal of cash must have been present at one point if they bought a vehicle or any equipment.

I listen to Dave Ramsey, and I do agree with his "save up and pay cash" philosophy. I take exception to his absolute "no borrowed money" rule as there are things like land a farmer/rancher most likely can't afford to pay cash when the right opportunity presents itself. But you have to weigh those situations carefully on their own merits.

My basic rule of thumb is I invest everything I can long term 5 yrs or more in the stock market. Put the money in the bank in savings and CDs if I think I might need it in 5 yrs or less.

I did buy a new tractor on 0%/5yr financing. Also bought a new rake, but paid cash. Both the tractor and rake enable me to keep working summers in the hayfield, when my health otherwise would have forced me to quit. I don't have any livestock anymore myself, so I sell the hay as a cash crop. Got a good neighbor who helps me for a share of the hay.

 

[Aaron]

I would never have that much cash at hand at all times, just on principle. I'd rather invest it into physical goods that benefit me such as tools, machinery, cattle, etc. Problem with cash is that it is just paper and $5 today can be worth $1 tomorrow. I agree to stay out of major debt, but to just hoard cash is not benefiting you to any great extent, other than being the favorite family relation with the juicy inheritance in his will.

What would be a comfortable cash amount for you? I guess I'm always thinking about the rainy day.

My grandfather, for example, had a lot of medical issues in the latter part of his life; however, he had enough cash that paying for it was never an issue.

5k would be a good buffer. 10k would be more than ample to handle basic bills/living expenses for several months.

 

[TexasBred]

I don't have any livestock anymore myself, so I sell the hay as a cash crop. Got a good neighbor who helps me for a share of the hay.

Oh my Gosh...gotta make a note of this...all hat....no cows... :lol: :lol: :lol: :hide:

 

[denvermartinfarms]

I've always heard 3 to 6 months of what it cost you to live is what you should have saved, then invest the rest. That's not how I do it, but I have a unique situation.

 

[TexasBred]

Think I"ll open me a "Pay Day" loan company. Might be able to hire Sky as my collector. ;-)

 

[tom4018]

Think I"ll open me a "Pay Day" loan company. Might be able to hire Sky as my collector. ;-)

If our small town did not have a the cash advance place you probably could not find a ink pen in this town. Every business you go into here seem to have their ink pens and note pads. They must make a killing for what they spend on them. Never used one and hope to never need one of their loans.

 

[herofan]

I would never have that much cash at hand at all times, just on principle. I'd rather invest it into physical goods that benefit me such as tools, machinery, cattle, etc. Problem with cash is that it is just paper and $5 today can be worth $1 tomorrow. I agree to stay out of major debt, but to just hoard cash is not benefiting you to any great extent, other than being the favorite family relation with the juicy inheritance in his will.

What would be a comfortable cash amount for you? I guess I'm always thinking about the rainy day.

My grandfather, for example, had a lot of medical issues in the latter part of his life; however, he had enough cash that paying for it was never an issue.

5k would be a good buffer. 10k would be more than ample to handle basic bills/living expenses for several months.

That's reasonable. The thing with me is that it would take me a while to save 5 or 10k. If something came up and I had to use it, then I'd be without a buffer for a while. Then, if something else came up while I was without a buffer, that would hurt. I guess that's why i like to stay ahead of a reasonable buffer amount. On the other hand, if I had money rolling in like hotcakes and it was no trouble to replace that 5 or 10k, that would be another story.

 

[M-5]

I have been where I lived paycheck to paycheck. No savings no backup. Ive been blessed and grew up. I have what I want and have what most consider toys. All PaID for except new Kubota. I could have paid for it but im gonna use their money instead. BTW the first new anything with wheels I have ever bought except one truck in 04. I have enough cash in the bank to get me thru a few months. As far as getting my hands on a large sum its would only take a day or two. The bank has all I need if needed a bunch of money. Living life scared of what might happen is foolish and stupid , living life and preparing for future and making sure they are taken care of if I'm gone is smart.