Will Your Savings Make You Poor?
There’s a simple strategy that could change your financial life and economic future
I joined the financial industry to help people accomplish their financial goals, and frankly, even as a lifelong entrepreneur, it wasn’t until I started doing this that I learned and discovered so much more about money and investments. I started my business 15 years ago; I worked hard, and yet, financial success was delayed until a few years later. Why? Well, perhaps because I didn’t understand how money works? The reality is that when it comes to money or personal finance, we get very little education.
Could your financial habits hurt you in unexpected ways? Will popular thinking about savings make you financially successful? How do you transform your mindset and learn more about money’s best practices? Let us face it, whether we liked it or not, we are all connected by money and the economic system.
There are ways to organize your money that can allow you to stress less and live a better lifestyle.
Here a couple of important principles.
It’s Not About How Much You Make
Many entrepreneurs or professionals make lots of money, only to lose it later since they don’t respect the principles of money. You probably heard about famous people or celebrities that ended up broke. Making money is only the first step.
It’s Not Only About How Much You Save
Why? Because of three forces, you may not be able to control: inflation, taxes, and unexpected events (like the pandemic crisis).
The money you save is subjected to inflation which means the value of your money is decreasing, as well as the time and effort you spent earning it. Why work so hard if there is the possibility of losing a significate value of your hard-earned money?
There is a solution to this problem of saving money.
It’s not about how much money you make.
It’s not about how much money you save. Saving money is only step two.
It’s about how much you invest.
Investing your money simply means putting your money to work (for you).
By now, you might be wondering what the best investment in the world is? Instead, ask yourself what is the best financial tool to help you reach your goals at the current stage of life and for a better future? Why? you might ask. Think about a chainsaw and a Swiss Army knife, which do you think is better? I am pretty sure you are thinking the correct answer is a chainsaw, but what would happen if you needed to open a can of food? The chainsaw wouldn’t be the most effective tool, would it? The answer depends is different for everyone. It all depends on how much money you saved, invested, your life goals, family situation, business situation, etc.
But even if you did everything perfectly, there are risks that you may not be able to control. That’s the reason risk management is important when it comes to your investments and assets. Think of diversification as not putting all your eggs in one basket.
The strategy that may be more effective when it comes to your money is to follow financial principles: earn, save, invest, diversify, preserve, and perpetuate. To gain additional insights about your personal situation, RTB Financial Group offers a complimentary discovery and strategy session. Don’t procrastinate, find out how to optimize your financial possibilities today. www.RTBFinancialGroup.com
Authors, Juan Pablo Delgado and Adam Bar are editorial guests in this blog. Juan Pablo Delgado is CEO of Latinx Professionals, business owner of NF Medica and Financial Pro. Adam Bar is Amazon’s best-selling author of Unleash your Financial Powerhouse.