Just a few weeks ago I opened the floor up for discussion regarding short to mid term investing strategies. I didn’t really know where I should be putting our extra savings. I was thinking I could put some in the bank, some in bonds, some in stocks, and invest the rest in this guy…
Many of you took the time to provide a little insight and let me know what you would do. Thankfully I’ve reached a decision.
I’m going to invest in opportunities.
Ha, how’s that for vague? Here’s my tentative game plan….
– Give away 10% of income.
– Contribute 15% gross income to retirement (401K and Roth IRA).
– Maintain a lifestyle that allows us to live on my income, so we can bank Girl Ninja’s.
– Put anywhere between $15,000 to $30,000 in our savings account each year.
You see that last step? It’s the most important. I want to build as much liquidity as possible so I can afford to take advantage of fantastic opportunities as they presents themselves. Here are 3 examples of what those opportunities might be…
1) Purchase an investment property for pennies (foreclosure, auction, market plummet, low interest rates, etc).
2) Throw money in the stock market when it is on sale…
3) Have the ability to do what I want, when I want, all because my bank account is loaded (e.g. take advantage of cheap airfare, pay cash for a new car when the auto industry is suffering, remodel the kitchen when materials are deeply discounted, etc).
While my savings account may only offer me a meager 1.1% return, the liquidity and flexibility it affords could lead to much higher gains (both financially and personally). Heck it’s worth a shot at least.
Are you saving up for the ‘right’ opportunity? Have you ever been presented with a fantastic deal, but lacked the discretionary savings to take advantage of it? Is that unicorn man not the creepiest thing you’ve ever seen in your life? Okay, second creepiest, this picture (that I’ve posted before) being the first…