Dear Investor,
At my house, with two boys under 5, snacks are survival tools. One minute, everyone’s laughing and playing, and the next, blood sugars drop. Suddenly, someone’s melting down because their favorite truck got taken by a sibling, or Dad broke their banana in half the wrong way.
In those moments, there’s no time to negotiate or explain delayed gratification. You need an immediate solution. A handful of pretzels, a granola bar or a quick bite becomes a short-term fix, calming the chaos and keeping the day moving.
Learn more
Save for a Rainy Day, from the Securities and Exchange Commission
Emergency lessons from a 40-year-old deuce, by Joel Dresang
Investor, you need a budget, by Tom Pappenfus
Counting on Rainy Days, by Joel Dresang
How to Prepare for and Survive Financial Hardship, from the Financial Industry Regulatory Authority
Then there are the weekends — the slow ones. The ones where I’ve planned ahead, fired up the smoker the night before and let a brisket cook low and slow for 12 hours. It takes time, patience and a few checks along the way. But when it’s ready, we all sit down together. We eat, talk and savor the moment.
Just like that meal, investing requires patience and planning. The payoff isn’t instant, but the reward, like that long-cooked brisket, is both lasting and meaningful.
That’s the difference between emergency saving and investing.
Emergency savings are the snack. They keep things steady during those out-of-nowhere expenses such as unexpected car repairs, medical bills or job hiccups.
You don’t save to get rich. You save to avoid being thrown off course — interrupting the compounding of your investments. That’s why emergency funds matter. It’s not about the rate of return — it’s about peace of mind.
Investing, on the other hand, is the brisket. It’s long-term. It takes time and consistency before you see results, but eventually it builds real, lasting value. This is where compounding does its quiet magic: Tiny gains, layered year over year, eventually becoming something much larger. Investing helps you outpace inflation, retire on your terms and build wealth that lasts beyond your lifetime.
Timing matters. If you need the money next month, it probably shouldn’t be in the stock market. That’s like tossing a frozen steak on the grill five minutes before dinner. Saving is for short-term goals — a vacation, a new car, a downpayment in six months. Investing is for long-term goals — a child’s education a decade away, retirement two or three decades out. Match the tool to the timeline.
And yes, investing carries more uncertainty. Markets go up, markets go down. There are no guarantees. But that’s part of the trade-off. You’re accepting short-term volatility in exchange for the potential of greater long-term rewards. With savings, you trade upside for stability. Both are valid. Both serve a purpose.
Think of your savings as a buffer: It cushions shocks. Before going all-in on investments, build that cushion and keep it somewhere stable and reliable. Places like a high-yield savings or money market account, where safety and liquidity matter more than growth. Saving three to six months of expenses is a good rule of thumb, more if life is unpredictable. With that cushion in place, you’re ready to invest — slowly, wisely, and in a way that fits your goals and temperament.
Just like my boys need both snacks and slow-cooked meals, your financial life needs both safety and growth. The snacks get you through the unexpected. The slow-cooked meals bring everyone to the table. Build both. Respect both. With time, you’ll have a life — and a portfolio, that’s well-fed and well-balanced.
Until next time,
Kendall
Kendall Bauer is vice president and investment advisor at Landaas & Company, LLC.