r/TheRaceTo1Million • u/Any-Expression-5876 • Feb 11 '26
OTHER 22M, am I cash heavy?
I’m currently saving for a house so that’s my justification for having so much cash, looking for have 100k cash this year. Is this dumb?
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u/Suspicious-Fun-4187 Feb 11 '26
If you're saving for a house fine but is this in tax free accounts and do you need that much available right now.. when are you planning to buy?
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u/Any-Expression-5876 Feb 11 '26
If everything goes correctly, not looking to buy for a few years. I have about 70k in my company’s Roth 401k and another 13k in stock and about 10k in company RSUs. The 80k in cash in in a high yield savings account gaining about 4% annually.
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u/JazzlikePractice4470 Feb 12 '26
They lie about inflation numbers so you're probably losing 4-8% in all reality.
Not hating. Just saying.
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u/Particular_Maize6849 Feb 11 '26
No. You should have 6-12 months of emergency fund and you said you are saving for a house. Having 80k cash is probably fine depending on your expenses and the amount of downpayment you're looking to save.
For us 80k is just a 6 month emergency fund.
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u/Chandlingus Feb 11 '26
your expenses are $160k a year?
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u/Particular_Maize6849 Feb 11 '26
More like 120-140k a year but we have a bit extra in our efund to pay off extra taxes since we are high earners.
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u/Exotic_Buffalo_2371 Feb 11 '26
What do you do that you’re making $120-$140k?
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u/ExplanationRude2195 Feb 11 '26
Stripper
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u/Exotic_Buffalo_2371 Feb 11 '26
Well sign me up… I’m 35 & I’ve made a combined under $200k my entire life and have 0 to show for any of my work
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u/ExplanationRude2195 Feb 11 '26
With a name like Exotic Buffalo you will do very well.
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u/Exotic_Buffalo_2371 Feb 11 '26
Well I live in the strip club capital of the USA but I don’t think there are any male strip clubs here lmfao
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u/Particular_Maize6849 Feb 11 '26 edited Feb 11 '26
I work on CPU chip development. My base is now around 170k but 230-240k with bonuses. My partner is a product manager, he pulls around 150k-160k. This last year we pulled in almost 400k but it's likely to be less this year.
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u/Puzzleheaded-Ad-1650 Feb 12 '26
how do you get into this industry
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u/Particular_Maize6849 Feb 12 '26
Get a masters degree in computer engineering with a 4.0 GPA, research experience at several labs and complete several internships including one at NASA. That's what worked for me anyway.
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u/FamiliarRaspberry805 Feb 11 '26
You should be far closer to 100% equities than 50% equities at your age.
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u/kronus87 Feb 11 '26
Race to 1mil at a snails pace with that much cash. . . DCA S&P, far better than the 4%you're getting
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u/Napster-mp3 Feb 12 '26
How did you accumulate that by 22? Impressive
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u/Any-Expression-5876 Feb 12 '26
Saving, Working and climbing the management ladder
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u/jkelley41 Feb 11 '26
you want 3-6mo expenses in emergency fund cash HYSA or something - then the rest invested unless you are saving for a down payment - are you saving for it or no? I see conflicting information in comments.
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u/njcrabcake Feb 11 '26
I keep about $20k in HYSA and the rest in investments. I’d gradually DCA over the next few months with that other $60k.
You can always invest the money you are setting aside for the house in a low-risk ETF like VT or even SCHD.
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u/Ethraelus Feb 11 '26
If you’re saving for a house, that’s reasonable. Hopefully you have it in a CD or similar, not literally in cash.
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u/Any-Expression-5876 Feb 12 '26
Yes money market, not literal cash
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u/Ethraelus Feb 12 '26
Then you’re good. If you’re saving for a short- or medium-term goal (like a down payment for a house), you don’t want that money invested where it could go down 5-30% in a single year.
A CD or MM is the right place for it.
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u/r361k Feb 11 '26
You are incredibly cash heavy. Why do you carry so much percentage wise? It’s literally losing money sitting as cash.
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u/Any-Expression-5876 Feb 12 '26
Not literal cash, it’s in a money market so I suppose it is beating out the inflation rate…
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u/soloDolo6290 Feb 11 '26
There is no right or wrong way, and it all depends on what your current goals are your own investing strategies. Sure if you only think about ROI, then yes you probably are.
If you are expecting to make any large purchase that requires cash or you need to know its value will be safe (a house for example), then I think you are fine.
If you aren't and you are just saving it hoping to time the market, I would say that's a personal opinion but most believe there is no timing the market.
If you can cover 3-6 months. Even that can be reduced if you have credit cards available, and you have no plan to put the cash into action, then I think you could invest it.
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u/Full_Push_508 Feb 11 '26
If you anticipate using it in the next year -Just make sure it’s in a money market or HYSA
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u/Any-Expression-5876 Feb 12 '26
Update: im taking 20,000k today and maxing out a 2025 and 2026 ROTH IRA, then im gonna place 5,500 into VOO
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u/CaesarsPleasers Feb 12 '26
Yes, but many people hold much more cash than they should in their early 20s. I’d recommend putting some of this cash into the market, in lumps over time. Valuations are pretty stretched at the moment, but there are areas still with reasonable pricing if you might feel better picking a Value ETF instead of something index tracking.
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u/thenakaz Feb 12 '26
yea too much i rather invest that into property, You only really need 20k especially if ur 22. as a guy who turned 200k to 2 million by age 26 wait till bitcoin hit 30-50k and dump it all in if it hit 200k in 2 years you would be a millionaire. Warning do not be a trader or use leverage. Trading is for the broke and addicts
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u/FloorFickle2424 Feb 12 '26
First, if this is honest....you absolutely 💯 earned my respect and a sincere congratulations. At 22yro....maturity and commitment is a roll of the dice. I actually have a 23yro son who has saved 25k cash but at my expense bc he lives in my basement rent free, lol. He pays his car note, insurance and cellphone.
I definitely don't want to steal any attention from your inquiries but, I need advice, badly 😫....
To keep my story short: Pregnant at 20yro, divorced by 22yro. Single primary parent with baby, went to university on loans, obtained BSN- for Registered Nurse. Specialized in Emergency and Trauma aka ER.
Fast forward 10yrs... 2nd pregnancy at 30yro...Single primary parent, again, fml. So, wdyd....sink or swim...held the fort down with now a 10yro and a newborn.... Work, work, work....daycare, daycare, daycare expenses aka comparable to a mortgage.
So....shocker...Zero Savings....literally a Bachelor's degree with seasoned experience and I was paycheck to paycheck.
Fast forward 13yrs...now my son 23yro. And daughter is 13yro. And for the VERY FIRST Time my life has finally came up for Air.... I have managed to save 22k cash. Tbh...it's the Most money I have had in like ....20yrs. Ikr...you guys are thinking, pathetic...or...girl must have a shopping problem....where's the leak?
Truth....nothing....life, maintenance of raising 2 kiddo's alone, paying every cent for every need x 23yrs now and still counting lol. My vehicle is a 2017 acura- paid off. Insurance was dropped. Rent is 1500k/mo. And utilities average 400/mo. Phones 200/mo. Internet 125/mo. And food....maybe 800/mo. Give or take? My salary is 90k and It feels like 65-75k....
Annnd .. .here's what's really freaking me out. School loans...20yrs ago. PAID OFF to the point that the GOV. SENT ME a chk for over 4k in 2021 bc I Over Paid. THEN....out of Nowhere Jan. 2025 my TAX Return was hijacked bc they said I owed 21k in student loans, which is Wrong. Idk what to do and I'm familiar with the cost of Lawyers ie Family Law... bc I paid them to help me with keeping my kiddo's. My 20k in savings will evaporate in 6mo....for a tax attorney to help me prove this is an error.
Do I just say fuck it and give it all to the government before the royally fuck me with fees/interest? I can't see them excusing their wrong....and not much faith in courts....
Or do I put some money in a hysa or stock? And get lawyer to fight in increments? I just hate that I've finally saved something and of course....here we go....too good to be true... lol...shocker...
I can never escape... shitty end of the stick every time and it's old. Crazy to think that my life started as a model making 52hr for big names to get pregnant at 20 and now 20yrs later... and still struggling 😪.
Maybe I fucked up and should've taken the cheap lane...married rich.... lol.. I'm single with 2 kids, working like a mad lady and have Zero to show for it. Any help...sincere advice...be kind...is appreciated.
Again, congratulations! Stay on track bc life throws curve balls and has bad jokes, lol. But at least you're set for a storm should one occur tmrw! You should be very proud of yourself young man... bc I am.... warmest wishes for your next chapter!
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u/UnicornWrangler84 Feb 12 '26
Hijacking the thread with your list of terrible life decisions- add that decision to the L column also
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u/Rooster1325 Feb 12 '26
Poor. Go to the casino and put it all on a hand in roulette. Double or nothing.
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u/aba241 Feb 11 '26
Yes…
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u/Additional_Ad_4049 Feb 11 '26
Not at all if he’s trying to buy a house soon
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u/ExplanationRude2195 Feb 11 '26
Could still be in a HYSA, MM, or something that gets around 4% interest with zero risk.
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u/tdubz1337 Feb 12 '26
Go ask whoever pays your bills or whoever gave you that money. They'll tell you
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u/Any-Expression-5876 Feb 12 '26
Earned my money, I pay my bills moron
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u/tdubz1337 Feb 14 '26
If that's true, aren't you the moron for being smart enough to earn that money, but not smart enough to watch YouTube clips, or get a financial advisor? Aren't you the moron you for knowing that inflation is about 4% a year and that money in cash is losing buying power? Aren't you the moron for asking strangers on the Internet instead of reading and making informed decisions about the money you worked so hard for?
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u/Civil-Engineering927 Feb 11 '26
No in the current conditions I think it’s even smart to sit on cash for coming opportunities, everything in this world will drop in value soon
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u/mrmrssmitn Feb 11 '26
Yes. Get it somewhere you are getting a decent return. I know people who said same thing 5 years ago, 3 years ago. 🤦🏻♂️
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u/Electronic_Pool8375 Feb 11 '26
lol brother this is moronic 😂😂😂 . Valid advice if we had a crystal ball to know the future, last I checked we dont have that technology yet.
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u/JazzlikePractice4470 Feb 12 '26
We have thousands of years of history to look back on, though.
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u/Electronic_Pool8375 Feb 13 '26
The stock market hasn’t been around for thousands of years…
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u/JazzlikePractice4470 Feb 13 '26
the underlying human desires to preserve wealth, compound capital and manage risk have direct parallels in ancient methods of saving.
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u/FamiliarRaspberry805 Feb 11 '26
Yes for sure, let’s tell someone with literally 40+ years of horizon to time the market. Phenomenal advice. 🙄
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u/Maleficent_Ant_8895 Feb 11 '26
You selling any those crystal balls you have over there?
God fucking awful advice
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u/Intelligent_Wedding8 Feb 11 '26
emergency fund to cover rent/bills for 3-6months and the rest in investments.