7 thoughts on “Guest Blog Post ft. Kait from Keeping Change

  1. Kait (and Alyssa)

    Great post on getting some return on liquid savings, your “eff you” or rainy day fund. It makes the difference clear regarding liquidity and safety of principal for the short-term, funds that you might need access to it anytime, compared to long-term investments where you can take much higher risk to principal because that’s the only way you get much higher returns, which is what you will want to do with retirement funds
    Will you be doing more posts on investing?
    Good luck,

    Liked by 2 people

  2. Come on now – you twenty somethings are all out rock climbing and bungee jumping and traveling through Europe with just the clothes in your pack. I’ve seen the Mountain Dew and the Pepsi commercials. Take some risk here.

    In all seriousness, Kait is absolutely right that you want stability for your emergency fund since you need it to be there for emergencies. The only way you can increase your rate of return without sacrificing that stability is to make an agreement with a bank that you will put some restrictions on it and not take it out on a whim. It is impressive that she found a 1%+ rate. They should be going up again is the Federal Reserve raises bank rates, like they are hinting they will do soon.

    But every twenty-something, or even thirty-something or forty-something, who has an emergency fund and is not investing (and doesn’t have credit cards to pay off) should find $3000, go online to Vanguard or another mutual fund company that offers index funds, and buy into an S&P 500 fund, a total market fund, or the like. Just find the one with the lowest fees that has earned 10% or more during the last ten years and dive in. Then, start sending in $100, $200, or whatever you can afford to them each chance you get to buy more. This is the kind of thing you can forget you own, except for adding a couple of lines to your taxes each year. Do it inside an IRA (the mutual fund company will help you set one up) and you won’t even need to worry about taxes until you retire. Do this today and then check your balance in twenty years. You’ll be glad you did. Carpe Diem, invest for tomorrow.


    1. Thank you for your feedback. I appreciate that you recognize that people in their 20’s are portrayed as risk takers through the media, and yes I would say in real life too. I do have to say, however, taking on risk in investing is a whole new world for people who have never done so before.

      I commend Kait because she made the first step of recognition. She knew she could receive more of a return than a standard savings account and took the time to research and figure out how. There is full disclosure she is taking baby steps and that the 1% return is a way for her to get slowly introduced to investing.

      Thank you for the advice of turning towards Vanguard or a mutual fund company to take on more risk. I do agree that is something that will experience a lot of growth, and something that you can contribute to. With the money being out of sight as you set aside to an IRA, etc. then there is no temptation to spend the money. This indeed could be the next step Kait could take to take on more risk and also her investing to the next level. Anyone in their 20’s (who did not receive this type of financial guidance from parents) I admire because they are thinking to the next level of how they can grow their money. Currently, I do have an IRA that has a time weighted return of 6.1%. Will that fluctuate? Of course! But I’m willing to accept that regardless compounding will do it’s magic, correction will take place, I will need to re-balance, and in 20 years I surely will be smiling. Taking on and accepting risk is the first big step, and once you get past that there are a multitude of options that one can take on to invest!

      A money market savings account with 1% return was Kait’s first step, thank you for providing guidance as to what someone can do next to invest.


      1. I agree completely with both of you! Yes, as Alyssa has pointed out I am still (slowly) experimenting with the best ways for me to invest my hard earned $$… one little step at a time 🙂 And you’re absolutely right, at my age I can afford to take a bit more risk with my investing strategies – I definitely plan on doing so in the very near future! I’ll be writing about all of the strategies that I try and will report back on how they pay off for me as time goes on, so I thank you for your input/advice – I will definitely keep your suggestions in mind.

        Liked by 1 person

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