Girl Ninja and I have a significant amount of our net worth sitting as cash in a “high yield” savings account. It’s exciting that we are just a few weeks away from hitting our $100,000 savings goal, but it’s also terribly depressing to know this money has earned a paltry 0.8% over the last couple years. Especially when it could have been earning 20%+ in the stock market. I mean, I would literally have an extra $20,000 to my name if I saved via the stock market, instead of saving via a bank account.
As you know, we are keeping such an excessive amount of cash on hand for a down payment on our first place. We’ve been hunting for about six months now, and the reality is, we are no closer to buying a home today than we were when we first started.
If we decided tomorrow that we never wanted to own a home, I would immediately take $90,000 out of our savings account and start putting it in the market. This would leave us about $10,000 in cash for emergencies. I think having more than $10k in the bank is pretty silly. Especially when we have a healthy discretionary income, stable jobs, no kids, and a Roth IRE.
My question for you today is simple:
Is there anywhere else I should consider putting this $90,000?
Half of our net worth is failing to keep up with inflation. This concerns me and I feel like something needs to be done about it. Only problem is, I don’t know what reasonable alternatives there are to savings accounts when it comes to having quick access to cash in the event Girl Ninja and I finally find a house worth buying. HELP!!!