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.
Your saving rate is more important than the growth rate of your investments early on. Debt is basically negative savings so yeah, paying off high interest credit card debt is definitely a good idea.
Another obvious investment is Cash Flowing Real Estate. Many markets across the country are going to make long term buy and hold investors very wealthy.
Accumulate WATER, or a water source and SEEDS, and enough food to keep you alive until your first
harvest.
The United Nations created food safety act has just be reintroduced to the U S Congress after BIG AGRI contributed 17 million dollars to congressional political campaigns.
Here in Europe, over the counter vitamins and minerals still available in the U S are not available
or require a prescription. "Health foods" produced by local small organic farms are mostly outlawed.
Big Agri does not want you growing your own food, even the Amish of Pennsylvania, who have grown food for themselves since before colonial times, are being targeted. This is an all out war by the corporate food giants to demolish any competition.
If the cost of food increases as predicted, it will quickly consume most people's savings and unless
your monthly income flow is in the tens of thousands, you will find yourself competing for a place in the modern day bread line called food stamps along with the 39% of the population of the United States
who already receive food stamps. There were 44 million adults receiving food stamps and many represent families.
And, who runs the food stamp business? You guessed it one of the big brokerage houses of wall street!
JP Morgan is the largest processor of food stamp benefits in the United States. JP Morgan has contracted to provide food stamp debit cards … unbelievable – the more people on food stamps – the more profit for JP Morgan. There's a hot tip for the Wal-Mart fans…
When you are young, savings is just a discipline. As income is fairly low, so you are not putting away match.
There is a lot of nice graphs explaining that if you keep putting away $ 5, 10 K when you are in your 20+, you will die rich. Unfortunately this is not realistic.
Honestly. Life is a collection of experiences.
The best way to save – have two-three jobs, do not go out or on vacation. Do not have anything on your mind but job and savings.
Sure you can retire at 40+. Even better – you won't need much, as during your life you did not do much.
I am not advocating it, as a life style. But when I analysed our family expenditure over three years. I just got some information and we decided to freeze them. Not cut, just try to control ourselves.
Otherwise what is the point? A penny for your thought.
acumulate, definitely…hey saveing is pointless if u don't have a purpouse
I think that income generation is much more important if you have already cut out frivilous expenses that don't make you happy and credit card debt! Just my two cents.
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What a great rseocure this text is.
This post is helpful for us to know the difference between accumulation and savings. We are now better able to understand this concept. Thanks for this brilliant post
Accumulation: None is a compilation of rarities by American singer-songwriter Smog, released on November 4, 2002 in Europe by Domino Records and a day later in North America on Drag City. The compilation was released under his then-alias, Smog, and features the new song "White Ribbon".
Bangkok's poorest districts are spread throughout the city. However, the most concentrated area is just north of the Port of Bangkok at the turn of the Chao Phraya River. For an area of 10 square kilometres (4 sq mi), the Khlong Toei district houses one of the poorest areas in the country with half-built houses and midrises for immigrants and workers from the northeast Isan provinces.
Hardware features were added that enabled use of runtime libraries, interrupts, and parallel processing.
Saving also includes reducing expenditures, such as recurring costs. In terms of personal finance, saving specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher.
Saving is income not spent, or deferred consumption. Methods of saving include putting money aside in a bank or pension plan.
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