Here’s what makes me frustrated. With a lot of money guru content, they’ll always say make sure you save and you invest, but they don’t tell you how much to do of each. And the thing is, they do wildly different things and you use them at different times. So it gets kind of confusing for people. And Francis Kirk come, a financial journalist and educator, and here is a little shortcut on how you can think about it to help you figure it out.
Savings are the money that you pack for the short term. So life’s emergencies like a car repair or if you lose your job, the savings are the money that’s there ready to save your bacon at short notice. Meanwhile, investing as money the attorney into an employee for you. It is going out there and earning for you, building your wealth. But you don’t just have a job for a week and you don’t get into investing for the short term either. It’s gotta stay there for years. And if it doesn’t work immediately, you don’t just yank it out and panic, you stick with it. If you want to learn more, start changing your money habits and taking control of it. I’ve got a free money diary download to get you started. It’s link to my buyer.