Most things other people call me lucky for, I think are based on rational risk-reward calculations. For example, I rarely go to the bank. When paid in cash, I’d let it pile up in my dresser for months before bothering to deposit it. When coming back from Guatemala with the several thousand dollars in cash I had saved from the last few months of working, I put it in my baggage rather than paying $25 for a wire transfer.
That seems irrational because it has a chance of leading to civil forfeiture if you’re in the US. (The Federal government can still confiscate money directly, even though it has recently been cut down for states.)
Also, you need to count the interest that the money could have earned while in the bank against the cost of the wire transfer, as well as the risk of being burglarized and having your money stolen.
Civil forfeiture? Yikes, I never knew this could happen. Maybe if I had heard of this happening, it would have influenced my decision.
This wasn’t a ton of money, just my checking account balance of $8,000, so it wasn’t earning anything in the bank. The only cost I really considered was the risk of being burglarized, which I figured was smaller than 1/320th.
In just a few months? Yikes, I really should have pay more attention to money matters.
I did invest the money within one week of getting back to the US, but honestly, I hadn’t really been expecting much money to have piled up at all. I was in Guatemala mostly for a long, fun vacation, and my small part-time teacher’s salary was just a bonus. My bank receipts never listed my current balance, and I was kind of curious about how much I had, but not curious enough to stand in the 20 minute line at the other half of the bank where people inquired about such things (Guatemala isn’t known for efficiency). When I finally withdrew, I realized I had spent literally none of it.
Anyway, you’ve just reminded me that I should get my past four months of untouched nanny salary invested as soon as possible, so thanks!
I was thinking on the order of a year. Here you can get 4% savings rates with a little bit of trickery, which would be $75 after three months, $320 after a full year.
Even if it’s just $50, those $50 add up over time. And if you’re disciplined to always add more than you take out from savings, the effects of compounding are huge. You’re probably leaving a lot more money on the table than you realize.
That seems irrational because it has a chance of leading to civil forfeiture if you’re in the US. (The Federal government can still confiscate money directly, even though it has recently been cut down for states.)
Also, you need to count the interest that the money could have earned while in the bank against the cost of the wire transfer, as well as the risk of being burglarized and having your money stolen.
Civil forfeiture? Yikes, I never knew this could happen. Maybe if I had heard of this happening, it would have influenced my decision.
This wasn’t a ton of money, just my checking account balance of $8,000, so it wasn’t earning anything in the bank. The only cost I really considered was the risk of being burglarized, which I figured was smaller than 1/320th.
The risk of civil forfeiture is the risk of being robbed.
You could have been invested, or had a CD or high yields savings account which would have at least yielded a few hundred dollars.
In just a few months? Yikes, I really should have pay more attention to money matters.
I did invest the money within one week of getting back to the US, but honestly, I hadn’t really been expecting much money to have piled up at all. I was in Guatemala mostly for a long, fun vacation, and my small part-time teacher’s salary was just a bonus. My bank receipts never listed my current balance, and I was kind of curious about how much I had, but not curious enough to stand in the 20 minute line at the other half of the bank where people inquired about such things (Guatemala isn’t known for efficiency). When I finally withdrew, I realized I had spent literally none of it.
Anyway, you’ve just reminded me that I should get my past four months of untouched nanny salary invested as soon as possible, so thanks!
I was thinking on the order of a year. Here you can get 4% savings rates with a little bit of trickery, which would be $75 after three months, $320 after a full year.
Even if it’s just $50, those $50 add up over time. And if you’re disciplined to always add more than you take out from savings, the effects of compounding are huge. You’re probably leaving a lot more money on the table than you realize.