This goes out to all those savers out there. Nothing is wrong with saving but acquiring money does not stop there. I need for you to have a plan of action. One rule that you should always live by is to Never ever let money just sit. Always have your money working for you whether it be through a CD (which rates suck right now), a mutual fund, equity in a house, stocks,…etc. I think you get the point it is very useless to have money in a regular banking or checking account unless you are about to pay a bill or purchase something hopefully needed.
Think of your money as your builders that are building a fort for you (your financial security nest egg). If you were to stop by and check up on your soldiers (builders of your fort) and see your soldiers standing around doing nothing you would have a fit and demand that they get to work because the fort must be built right? When you let money sit without working for you when you, you are allowing your builders to just sit there and occupy space. When those builders leave there is nothing to replace them. Thus your money is gone when you spend it. If you have your builders, building a portion of your building (your financial nest egg) then at least when they go you have something to fall back on right? I hope you get my point.
I want to stress that when you do allow your money to work for you there are risks involved. There are also risks if you don’t allow your money to work for you as well. I would rather take the risk of some gains rather than letting it sit there and have little to no gains at all.
There are numerous vehicles to put your money in. The different vehicles that you can put your money in are broken down basically to what type of investor you are, your emotional IQ and what is your end goal with your money. When sitting and plotting about what you would like to do with your money always keep the end goal in mind. End goal meaning, why do I want to invest this money? how much am I trying to make?, what is this money for? And so on …
Emotions can make or break you not only in life, but also when making money decisions, Never ever make a decision when it comes to money based on how you feel. Make it based on observations and solid facts. Scared money don’t make no money…