I write about advanced financial strategies; these are designed in three stages: Making Money 101 – Get on your feet, financially speaking; Making Money 201 – Build your wealth; and, Making Money 301 – Keep your wealth.
Since we are dealing in time-frames of years (at least 7 years to go from ‘zero to financial hero’) we have to expect to deal in all phases of market cycles – both the up’s and the down’s – so I avoid talking about specific ‘today’ strategies in favor of the longer-term.
However, my son has said that I need to help people through the current financial ‘crisis’, so that’s what I am going to do over the next 3 days:
Today, advice for all those Making Money 101 …
Wherever your money is right now, keep it there!
That’s it, thanks for reading 😉
Oh, you want details?!
OK, here it comes:
– If you are currently in cash, stay in cash.
– If you are currently in stocks or mutual funds, stay in stocks/mutual funds.
– If you are currently in real-estate AND can afford the payments and are not ridiculously in credit card and other consumer debt, stay in real-estate.
Well, as this post explained, over the long run, you will achieve the market averages for all of these investment choices … only if you stick with them through thick and thin.
Right now qualifies as being about as ‘thin’ as anything in the last 100+ years 😉
If you run away during the bad times (now) and only buy in the good times (2006) you will be buying high and selling low: the exact opposite of what you should be doing …
… then, you will be lucky to make 3% or 4% annual returns – the same (or less) than if you had kept your money in cash!
So, for those MM101’ers out there, what are you doing with your assets while the financial world seems to be crumbling around you?