What Is More Important To Accumulate Than Savings?
Savings is the cornerstone of a sound financial plan. It provides emergency funds, the ability to invest and more. Most financial advice is geared towards boosting savings via suppressing spending. Unfortunately, because of the crazy economic and political environment, there might be something more important to pursue than savings.
Accumulating income streams is more important than savings.
Unfortunately, idle cash is almost a liability these days as your purchasing power continues to get eroded by inflation and consequences of Federal Reserve policy. As such, you need to work hard to allocate your cash into areas that will generate a sufficient return.
These areas might be stocks, bonds, businesses, etc.
Not only do you need to generate a return, but you need to generate an inflation adjusted return over time. Cash flowing businesses are typically the most worthy investment because they can deliver inflation adjusted returns year after year assuming it is a viable business.
This might mean dividend stocks like Walmart, or a local business that you know has the potential to deliver long term returns.
So, fix your personal finances so that you’re automatically accumulating savings. You can do this by maintaining/growing your income and keeping your expenses in check. Get that situation on automatic, then focus your energy on allocating your cash into investments that will generate long term returns.
Saving money is only half the game and if you fail to do the second part, you might lose out as inflation eats away your money. Accumulate positions in cash flowing businesses that will make money year after year and hold up against inflation.