3.02.2012

Money Psychology: In the Bank

Thanks for all of your congratulatory wishes on my previous post! Now we're just kicking back and waiting, but I can't wait to get the keys! It will really feel official. I can't wait to take pictures and show you guys too, it's all very exciting and thanks for joining me on this journey...it was a great learning experience.

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Yesterday I transferred $19,000 out of my ING account and into my checking account so I can wire it to escrow soon for the down payment and closing costs. It saddens me that I won't have all that cash sitting in my account and readily available anymore. I know that my net worth will go up with the purchase of this property as an asset, but nothing makes you feel as comfortable and safe as having a big stash of cash ready for an emergency. I only have about $3,000 left in cash after I pay for my share of the down payment, and then I'll have to build up my emergency fund again. I left a little over $1,000 in my travel fund and $700 in my gift fund so I don't have to start at 0 again, but my emergency fund is down to $1,000ish too and that is scary!

I'm remembering all the feelings I got when I would look at my mint account and feel so accomplished. It's funny right, when you have all that cash, you feel safe and if you lost your job or had to go to the hospital, you'd be fine. I'm feeling really depressed about it right now but I have to remember that I'm not losing that money, it's just going to be in the form of a property.

Just the other day, Mint sent me a notice that I reached my goal of $20,000 in my e-fund. I remember setting this goal and thinking that when I hit $20,000, I'd be ready to buy a place, and coincidentally right after it happened I did find a place to buy! Weird how life works right?


One thing is for sure, I definitely feel less rich. Something about having all that cash sitting in your account makes you feel more invincible and actually, led me to spend more frivolously. That cup at Starbucks and that pack of gum would not be a big deal because hey, I had lots of cash in my account if anything happened and I could "afford" it right?

Now that I'm low on cash, I feel inspired to pinch my pennies once again and to live like I'm homeless or extremely poor. I'll have to say no to those last minute purchases at the grocery store or those useless shopping trips at Target that turn into $50 when you only went there for one item. I think I've found a renewed sense of motivation for saving and I think that's a good thing. It's still nice to see my investment accounts and 401k etc., filled with money, but I do not intend to touch those until I'm fully retired or if something happens in the long-term future that requires a lot of money.

For now I'll be happy that my net worth will be going up and that I'll be saving like a crazy person again. I'm already thinking of my next place...hopefully it will be a 2-story house with no HOA fees and in a lovely neighborhood. I'll have to start saving for that down payment and dreaming of that day.

So anyone else feel the money psychology of having tons of cash in your accounts and ready for use vs. having non-liquid assets? Or is it just me?!

5 comments:

Daisy said...Best Blogger Tips[Reply to comment]Best Blogger Templates

I could definitely see that happening to me - when we were looking at purchasing a home, we felt the same way. I kept thinking about how I didn't want to part with my money! We didn't end up doing that, but then my car broke down and I had to part with it anyway.

Michelle P said...Best Blogger Tips[Reply to comment]Best Blogger Templates

I know exactly what you mean. I actually talked about that in nearly all of my posts this week. I love having a big buffer.

StackingCash said...Best Blogger Tips[Reply to comment]Best Blogger Templates

Absolutly. We have been shopping for a new home for several years, sigh. That down payment is pretty big now... So ya, now it's really money burning a hole in my pocket, I can "afford" so many things now but have to be disciplined and only buy what we need until we find that perfect house.

The Happy Homeowner said...Best Blogger Tips[Reply to comment]Best Blogger Templates

I definitely know what you mean, and I felt the exact same way when I bought my place. The good thing is that you'll build it right back up again!

Rafiki said...Best Blogger Tips[Reply to comment]Best Blogger Templates

I know that the house plan fell through and you still have the cash but I can relate to what you are feeling with the money psychology. This is only the beginning for you. In the future you will have both. Money and Assets and you will look back and smile.

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