I loved how you explained high- yield savings accounts :D

@TripOfALifestyle

Жыл бұрын

Glad you enjoyed the video!

Bravo 👏

This is a great video! Thank you! I really needed it! I had no idea how much living expenses I should have in my emergency fund. I am curious though. Why do you guys keep both a checking account and a savings accounts? Aren’t savings accounts able to do pretty much everything checking accounts can? Did you guys end up changing banks for you HYSA? Bank rates are terrible now compared to some apps that give you up to 5%.

@TripOfALifestyle

11 ай бұрын

Thanks! In the past, by federal law, you could not make more than 6 withdrawals per month from a savings account. That has recently changed, but some banks still impose other restrictions on savings accounts that don't apply to checking. In general, checking accounts are a bit more flexible for quick access to your money. We still recommend Barclays and Ally for high-yield savings. Their rates always seem to adjust with the market, and they are both well over 4% right now. We have also been testing out Empower Personal Cash, which we like so far and has a slightly higher rate.

@rebekkasmith6612

11 ай бұрын

@@TripOfALifestyle I saw that you guys recommended Chase Total Checking for checking account on your website. How are you avoiding the $12 monthly fee?

@TripOfALifestyle

11 ай бұрын

@@rebekkasmith6612 It is waived with a balance exceeding $1,500.

Great video! I keep about 3 months expenses in savings and invest everything else. Since I have no debt, my liabilities are very low so I’m willing to accept the risk of having less savings for the reward of having more invested. What made you choose to keep 1-3 months in checking and 6-12 months in savings (a total of 7-15 month’s expenses in cash)? That seems like a lot of cash to have sitting around making (often) negative returns.

@TripOfALifestyle

Жыл бұрын

Thanks! Our typical living expenses are quite low compared to typical Americans: www.tripofalifestyle.com/money/our-spending-revealed/ As a result, 12 months of expenses isn't really all that much money. In the event that we needed to replace our car, or the HVAC in our house, or something else like that, we'd like to have some cash on hand. Aside from that, we're mostly retired and don't have full-time jobs any more, so our income isn't super high either. This makes a bigger cash buffer nice to have. Here's our cash holdings in better context of our entire portfolio: www.tripofalifestyle.com/money/our-investment-portfolio/

Ally just raised it's savings account rate to 2%!

@TripOfALifestyle

Жыл бұрын

Nice! They're always in flux. Ally and Barclays seem to constantly leapfrog one another (in both directions). Pick either one and forget about it. 😴