How Do Your Savings Stack Up?

How Do Your Savings Stack Up?

So, here’s an action that you can do right away, in your personal financial life to determine how your savings stack up. Write down any places where you’re storing money. Now I say places because some of those might be accounts. It could be a savings account, a checking account, a money market account, a stock account. It may be in retirement plans, like a 401K, 403b, IRA, or SEP.

Then, write down any places that you have cash that you don’t think of as an account. Maybe it’s the equity in your home or the cash value of life insurance. Those are just a few.

Ask yourself this question as you look at each one, is this money safe, or does it have the potential to go down in value?

That will tell you if this is truly savings, or if it’s an investment?

Money that is safe, and is going to remain at that same dollar value is safe money. Money that has the potential for loss, and can go down in dollar value, that’s an investment.

Next, ask yourself this question, of all of these accounts, what money is liquid, usable for any purpose, and in my control? And that is the luck test.

Can I convert it to cash? Is it usable? Can I use it for anything that I want to, and is it under my control?

Turn the Tables on How Your Savings Stack Up

Is a lot of your money at risk, illiquid, unusable, and not in your control?  It’s time to turn the tables on how your savings stack up.

Set up an automatic transfer to savings, so that you have money automatically being put into a safe tool. A place where it’s safe, liquid and available for you to be able to use.

Then, find a way to invest intentionally. Do this by thinking through which investment decisions align best with your investor criteria.

In that way, you’re not going to be looking for just any opportunity, but what is the best opportunity to deploy your capital. Often this is going to be looking for ways for you to generate cash flow with that asset.

Rachel Marshall

Rachel Marshall

Rachel empowers her clients to maximize and control their money so that they can accomplish their dreams and live out their highest purpose. She believes that if you understand the short and long-term impacts of the financial choices you make, you’re better suited to make choices that put you in control of your resources. She helps you discover money flowing out of your control, strategize ways to have more money flowing into your control so that the end result is that you have more money to retain and utilize during your lifetime, and more to pass on to future generations.

THE BUSINESS OWNER'S 3 STEP ROADMAP TO ACHIEVE TIME/FINANCIAL FREEDOM

(... without working harder or sacrificing your lifestyle! )

Early Tap of the 401k Replaces Homes as American Piggy Bank

Early Tap of the 401(k) Replaces Homes as American Piggy Bank (Reviewed) – TMA 050

By Rachel Marshall | October 29, 2018

Piggy banks may seem best suited to our childhood era.  We mentally organize them with wagon-rides, tooth fairies, and the endless pencil-sharpening of early grade school.  But as adults, we need and use piggy banks; they just come in a different form.  When people need money for life’s setbacks and lean times, one of the…

Read More
Privatized Banking Basics - Improving Every Area of Your Financial Life

Privatized Banking: The Golden Key that Unlocks Your Financial Life – TMA 049

By Rachel Marshall | October 22, 2018

You play a big game, and you want your money to keep pace.   Being in control is essential to you, and your money is no exception.  You don’t have time to be strung along every year, hoping for better returns.  Instead, you want to be able to count on your money to give you confidence…

Read More

Leave a Comment





This site uses Akismet to reduce spam. Learn how your comment data is processed.

Cash Flow System - Roadmap

The Business Owner's 3 STEP ROADMAP to
Achieve Time/Financial Freedom

(... without working harder or sacrificing your lifestyle! )

Share
Tweet
Share
Pin
Share
Tweet
Share
Pin