Registered: Apr 2007
09-05-12 05:31 PM
Quote from peilthetraveler:
I don't know if anyone else feels this way, but I noticed something. I always feel happier with more money in the bank. Not sure why. Like say I have $50k. If its in my checking account, something about that just makes me feel happy and content. I dont feel that way though if its in Stocks, or bonds, or gold, home equity, or even in cash. Why is that?
Its odd because the only thing I use my back account for is to pay bills. I pay everything with credit and just make transfers at the end of the month, but for some reason, having a higher bank balance seems to be more satisfying than having a higher brokerage account, or just having the cash laying around the house.
Anyone know the psychology behind something like that?
stocks = market risk
bonds = market risk
gold = market risk
home equity = market risk
cash = spending risk (when has cash in pocket ever NOT been spent eventually?)
bank deposits = few risks (as long as within FDIC limits, and FDIC stays solvent), except: 1) inflation, 2) hacker theft, ... ?
Inflation is no "small" risk, but we tend to conveniently tuck that idea away in the back of our minds somewhere. Hacker theft risk is small, and a good bank should make you whole in that event (happened to me).
Anyway, that's my Dr. Phil .02 as to why we may feel safer in bank deposits.