If you are like me, you may be wondering how to grow your savings/investments. Where to allocate and how much. I’m not a financial advisor, I’m in this with all of you. I’m just sharing here some guidelines that work for me, starting with realizing that no one, not even my 401-K fund manager, is going to take care of this for me.
1. It’s up to you.
Even if you are not a financial expert, your finances, your retirement, your wealth creation are in your own hands. The stock market is skyrocketing right now, but many analysts I’ve read think this is a short-term effect that will soon be replaced by a more candid reaction to our high unemployment, mounting debt, mounting medical bills, higher health social security and higher tax burden for the shrinking middle class.
So where do you put your money to grow? My husband, Ruben, and I talk about this all the time. It’s actually kind of funny, an academic and a classical musician discussing investment strategies, but that’s the way it is. The important thing about talking to professional financial advisors is that you have to be careful when distinguishing between experience and selling.
Use a financial advisor who makes money on your own investments, not commissions.
2. Set your intention.
It still amazes me how many people live almost permanently in reactive mode (although I used to live that way myself). You can tell that you are living this way if you are waiting for other things to happen to make a move, or perform an action. For example, I know of some musicians in town who are waiting to find out if the local symphony orchestra is going to restructure or not, before they decide to stay here or not. That is a totally rational way of thinking. But a more intentional, The creative answer is to decide where you want to live and live there. You can take care of the rest once you’re committed to a place to live.
3. invest in yourself.
Ultimately, you’ll see the best opportunities to create value and reap financial rewards. But it takes training your eye to see opportunities that you are uniquely positioned to take advantage of. Investing in yourself has to be part of your portfolio.
This can be training to invest in the stock market, real estate, starting a side business, trading commodities, or even increasing the value of your own home.
4. Take one step at a time.
The best news is that you don’t have to know as you are going to create your wealth, what exactly are you going to do. That will come to you, probably one step at a time. Your job is to draw a clear picture of what you would like to see happen.
You don’t have to decide right now, but start researching. Look who lives the way you want to live. Write down what you really like about your life as it is currently built and what you would like to change.
5. Savor what you have now.
You already know that people who live in mansions and have 6-7 figure bank accounts are no happier than you are at this very moment. In fact, many of them are miserable. Now I live in a much smaller house than the one I grew up in… I know many of you have lived through “new poor” and you know what I’m talking about. It’s important and fun to create your life, but the real trick is… be happy now!
Creating wealth is not an event, it is a process. It is even a way of living and I recommend that you undertake this project like me!
