I get the PMI houseguest analogy—been there. But I’m not convinced that keeping a bunch of cash on hand is always the best move, especially with inflation eating away at savings. You mentioned,
For me, tying up less in the house and investing the difference (even with PMI for a while) actually worked out better. It’s not always about outsmarting the market—sometimes it’s just about not letting your money sit idle. Just my two cents, though.“Keeping some cash on hand saved me more headaches than I expected, though.”
I get where you’re coming from—letting cash just sit there can feel like watching paint dry, especially when inflation’s lurking. But I’ve been burned before by not having enough liquidity when a surprise popped up (think: furnace died in January). Sure, investing the difference can pay off, but sometimes that peace of mind from a bigger emergency fund is worth more than squeezing out an extra percent or two. Guess it depends on your risk tolerance and how much you hate surprises...
sometimes that peace of mind from a bigger emergency fund is worth more than squeezing out an extra percent or two
Right there with you. Had a pipe burst last winter and if I hadn’t kept extra cash on hand, it would’ve been a nightmare. I get the urge to optimize returns, but sometimes you just need that buffer. Not everything in life is predictable, especially with houses...