Why not put all cash savings into Goldmoney?

I'm a young investor, getting started with GM. Please help me understand it correctly.

I have:
Equities
Savings: $30,000
Checking: $300

Should I put the $30,000 into my GM account until I make big purchases? Why have cash savings in the bank at all?
What is the smallest payment you would make with your gold?

Thanks
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Answers

  • tamayoktamayok Posts: 16 Tin ✭
    That's the way everyone should be doing things... Just keep enough in your checking account for your day-to-day or as a backup. The rest should be in savings here and/or invested. My opinion (and my methodology).
  • GoldmattersGoldmatters Posts: 3,630 Admin
    Hi @UC_MrPOWRs_iLuv_GOLD ! Congratulations on being such a smart saver and being ahead of game! Not only have you amassed a nice capital base, but you have found Goldmoney, which means you understand much more about finance and personal savings than the average joe. This is super impressive and I wish that most youngsters had your savvy.

    I think you are making all the right moves and I would trust your own instincts as they have been spot on so far. I actually don’t think you need much advice from others as you seem to have a great grasp on your priorities.

    It might be helpful to find a mentor that you trust who will help you learn more about investing and savings, but the truth is that there are no definitive answers and for the most part you will have to figure it out for yourself, which is a good thing!

    You already know that gold is money.

    And thats a darn good way to start!

    Good luck in your ventures

    Goldmatters
  • RocketDogRocketDog Posts: 474 Bronze ✭✭✭
    Hello @UC_MrPOWRs_iLuv_GOLD although I share your sentiment, I do have to address the, "Why Not?" part of your question.
    Why not, indeed?
    1) Although gold retains its value in the long run, particularly the very long run, in the short-term it can take some wicked plunges. When do you need your cash? Can you afford to temporarily lose some value if gold dips, without losing your home, or losing your mind?
    2) Something could go wrong with Goldmoney and/or the internet, you might not be able to access your Goldmoney gold savings for a period of time. Think hurricane in Puerto Rico -- no power, no phone, no internet, no GM transactions. (Goldmoney has a significant disaster-recovery plan which should keep your gold safe in the long run.) Therefore, it is good to have some of your savings in physical gold/silver stashed at or near your home.

    I split my savings into physical gold/silver, physical cash-on-hand, Goldmoney savings, cash savings (in a few banks/credit unions of different sizes in different states), stocks-that-should-do-better-in-a-crash, a large stack of day-to-day supplies to hedge against inflation and survive an emergency.
    I think this strategy covers many bases.
    But, since you are a young guy and may want to remain mobile, without a lot of physical possessions, I can honestly say, that if I were in your situation, I would be comfortable putting $25k of your $30k in Goldmoney and the other $5k in a local credit union/small bank. Assuming you are earning money to live on, you should do just fine.
  • GoldmattersGoldmatters Posts: 3,630 Admin
  • GMONEY1GMONEY1 Posts: 424 Silver ✭✭✭✭
    If Goldmoney had bill pay and direct deposit (both with no fee) I would probably do this.
    Not happy with banks right now.
  • RocketDogRocketDog Posts: 474 Bronze ✭✭✭
    @Gmoney1 I agree with you there. But I would be willing to pay a reasonable fee. Whatever fee they charge will probably be less than the taxation of inflation.
  • Benson55Benson55 Posts: 1 Tin ✭
    You really need to spread your portfolio amongst a few assets like shares, physical gold, on here I believe there is a limit to the amount in an account, I could be wrong.
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