Financial Independence: Core Principle #1
I have been thinking about creating core principles to my to my content for a while. It is finally time to to solidify three core principles I will continue to reference on each post.
Here we go!
Core Principle #1: Your Money Should Always Make Money For You
What do I mean by this?
- Don't keep cash sitting in a bank account earning 0.01% interest.
- Don't keep physical cash on you
- Don't go digging a hole and store your cash in the backyard
How My Understanding Of Money Has Evolved
I have made my fair share of mistakes after graduating college. Mistakes that I hope many can learn from. The single biggest one was not having my money invested and thinking I was doing things right by having a lot of cash in my savings account.
My parents didn't teach me anything about money to be honest. There were never household conversations where I learned about investing or saving. Once I graduated from college, I was off into the real world of the 9-5 bull s****. Getting a paycheck every two weeks that would direct deposit to my bank account. I had no idea what to do with the money, so I decided to let it sit in my Bank of America Savings account. This account was earning me 0.03% interest. I had no idea there were things I could be doing with the money versus letting it sit in cash earning a terrible interest rate.
The Greatest Lesson I Eventually Learned
The single greatest lesson I learned about money was ensuring your money was always working for you. You want your money to be creating more money soldiers!
Your money can't make money for you if you don't have it properly invested. This principal isn't meant to outline where to invest your money. The main point is that your money should always make money for you.
Key Takeaways
- Your money should always be making money for you. Period.
- Don't keep cash sitting in an account earning less than 1%
- Don't be overwhelmed by the different types of investments available to pursue. Do your research and move your money to a spot where you feel it has the best chance to multiply.
Don't forget @TheYoungRetireeBy33's 3 Core Principles:
1 - Your money should make money for you⠀⠀⠀⠀⠀⠀⠀⠀⠀
2 - Start early to realize the power of compound interest⠀⠀⠀⠀⠀⠀⠀⠀⠀
3 - Eliminate your largest expense by house hacking
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