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Rant: My younger cousin called me out on my 'saving' habits
I was talking to my cousin Mark (he's 22) about how I've been putting $50 a month into a high-yield savings account since I started working. He straight up said, 'You know inflation is eating half of that, right?' And he was right, I've been doing this for 4 years now and the $2,400 I've saved doesn't feel like much more than pocket change these days. It hit different because I always thought I was being responsible, but maybe I'm just being stubborn with old habits. Now I'm looking at putting that cash toward my student loans instead, which have an 8% rate. Has anyone else had a younger person point out something obvious about your money that you totally missed?
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vera_murphy26d ago
That line about "inflation eating half of that" really stung me just reading it. I can only imagine how it felt hearing it from your own cousin. But you know what, good for him for saying it, even if it hurt. You were being responsible, it's not your fault nobody teaches us that savings accounts are basically losing money right now. That 8% student loan is a beast, and honestly, throwing extra cash at that makes way more sense than watching your savings slowly shrink in value. I've been in the same boat, feeling proud of a little pile of money only to realize it's worth less than I thought.
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spencerm4626d ago
My uncle laid it out the same way for me last year. I had 12k saved up in a basic savings account and felt like I was doing everything right. He pulled out his phone, showed me the inflation calculator, and my jaw just dropped. Made me realize I was basically lighting money on fire every month that it sat there. Put 10k of it toward my 6% car loan the next week and never looked back.
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elliotadams16d ago
I mean that's fair but your uncle might've glossed over something. Paying off a 6% car loan is solid, no doubt. But idk, I think there's also a case for keeping some of that 12k in a high yield savings account instead of dumping it all on the loan. Like what if your car breaks down or you lose your job next month? Then you're stuck with no cash and still gotta make payments. It's not all or nothing. Could've split it 5k toward the loan and 5k into a 4% HYSA, then you're beating inflation a little and still have a cushion.
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