By and large, you can invest your money any way you see fit.
However, there are a few hard and fast rules when it comes to the way money works.
Specifically, in all of your accounts — from checking, to savings, to trading:
Money flows in, and money flows out.
That’s Accounting 101.
See, when you chase money (in the healthy way — not the greedy, by-any-means necessary way), you’re in control.
YOU control which jobs and salaries you seek.
YOU decide how much of that income to distribute to each of the buckets of responsibility in your life.
YOU control which stocks, bonds, etc. to buy.
In short, when you chase the money, you have more control of your future.
Even though positive cash flow is a basic rule, sometimes in life, it’s difficult to stay on the right side of it.
Believe me, I get it…
Things happen: lost jobs, medical emergencies, even surprise bundles of joy.
When it comes down to it, most of us are just one major life event away from being derailed financially.
When the money chases you, you have no control.
You have limited options.
You are at the mercy of bill collectors, banks, and other institutions with the keys to the kingdom.
When the bill collectors are calling at all hours and the student loans are past due, you’re being dragged along through life with no direction.
Many times you’re stuck in a job you hate, but can’t risk leaving.
Unfortunately, it goes even deeper.
When your financial house isn’t in order, it can become extremely difficult or even impossible to buy an actual house.
Now I have some other thoughts about homeownership, but that conversation is for another day.
For this conversation, we’ll discuss traditional homeownership.
Purchasing a home takes one of two things: credit, or massive amounts of upfront cash.
If your credit score is below 620 and your credit report is littered with delinquencies, late payments, and garnishments, you’re in for an uphill battle.
To purchase a decent house with no credit, you’re on the hook for $20k easily. And usually, if you’re struggling with credit, cash is also a problem.
The same goes for buying a car.
Unless you’re buying the vehicle outright, you need to secure an auto loan from the bank. Without good credit, again, you’re out of pocket for thousands of dollars.
Are you starting to see a pattern here?
It’s like the old saying goes, “Pay me now, or pay me later.”
If you don’t pay your bills, build your credit, and invest well now, you will pay down the road.
If you don’t take the time to get your financial life together, you run the high risk of being shut out of other major life events and milestones.
Staying on top of your finances takes time, attention, and discipline. But if you do the work now, you can reap the benefits for a lifetime.
There are a ton of free and premium resources online to help you budget better and improve your money management skills.
But if you need help investing better, or booking bigger gains, check out my free training video right here.
For years, I’ve been leveraging the stock market’s most powerful indicator to help my members book outstanding gains like the 222%, 234%, and 578% open gains in our portfolio right now.
It’s never too late to learn better money habits and how to invest well.
The power to improve your financial situation is in your hands. You just have to be willing to make the necessary changes.