I'm pretty frugal, over analyze every damn purchase into decision paralysis and never actually click order. As a result I have a healthy savings account... Which I should be investing, but yeah, decision paralysis.

It helps that I like vintage junk like Soviet camera lenses and watches that cost 1/10th of the new stuff so it doesn't really hurt my wallet when I do get impulsive. Still agonize over those purchases though.

[–] Bluescluestoothpaste@sh.itjust.works 3 points 2 days ago

Keep like six to twelve months expenses in cash for emergencies/economic layoffs etc. up to you if you have kids you probably want the twelve if you're a single person six is probably plenty. Then with that peace of mind put the rest in sp500 index and let it ride

[–] TranscendentalEmpire@lemmy.today 1 points 2 days ago (1 children)

Which I should be investing, but yeah, decision paralysis.

Yeah..... Our system actively punishes people who keep their money out of the market. It's nice to have a little emergency fund in savings just so you don't have to liquidate investments in case of unexpected needs, but besides that you're taking a pretty big loss by just letting it sit in your savings account.

From 2015 to 2026 the dollar lost about 40% of its buying power, so you're essentially losing about half your savings every ten years by not investing it. And it looks like that inflation is probably going to get worse every year for the foreseeable future.

[–] Bluescluestoothpaste@sh.itjust.works 1 points 2 days ago (1 children)

He should be getting interest about equal to inflation though.

[–] TranscendentalEmpire@lemmy.today 1 points 2 days ago

I wish... The average savings account is only .39% APY. High yield savings account can yield around 4%, but there's usually a minimum balance requirement, can often be harder to liquidate, and the interest is considered taxable income.