In this episode, Kevin shares why you should save money only to invest.
Kevin Daisey (00:01):
Save money only to invest what’s up. I’m Kevin Daisey, how’s it going? So talking about saving money and increasing your income, you should only be saving money, putting some away to invest it. Now you wanna have a rainy day fund something small to cover some expenses, whatever size that needs to be, get that to that place. And then don’t just keep dumping cash into like a, a savings account or a 401k that’s getting you barely any returns. And you have a lot of tax simplifications, like a 401k. You’re gonna be, you’re just dumping money into those things. Now, if you have a, a company match max that out, so whatever the max is do that, but don’t dump extra into those kinds of things. You need access to it. You need to be save and save to invest that money, whatever that investment might look like.
Kevin Daisey (01:02):
I don’t know for you, but for me, it’s, it’s rent real estate. So it’s rental properties. So I’ve saved money away until I am able to buy the next property. So I know what my down payment needs to be. And I know what rainy day fund I need to always keep on hand. So as long as I keep that, anything beyond that is now straight money for investing into real estate. And then each time I buy a piece of real estate, I basically start back from zero. Unless, you know, the property I bought at a lower rate and I didn’t, you know, I had more than I needed, but I’m basically looking at my account every time. And I created a savings account called real estate investing. So anything extra goes into that account. Now it might take you years to get to a point where you can put down a down payment, depends on your situation and your income, but you should have that goal and say, Hey, that’s what that account is for.
Kevin Daisey (02:02):
And I’m not touching it until I’m at a point where I can invest that and that’s gonna increase your income and your net worth by buying that piece of real estate. Now your, your investment might looks like something else. Maybe it’s starting a company maybe it’s going in on some other kind of deal or you know, investing into a company. I’m not sure whatever it is. You should be saving money to invest it. Not to just have it sit in an account. So figure out what you need to feel comfortable from a saving standpoint. And here’s the bad news. Most people don’t have a thousand dollars saved and I’m talking about and saving to a dust. If that’s the case, you have to look at other things like your income, what you’re doing now. And I’m gonna talk about that in a different episode, but you have to get that sorted out so that you can save
Kevin Daisey (02:59):
To invest so that you can start creating some cash flow. Some wealth take care of your family, your kids for the long term. So think about that when you’re saving a dollar, don’t think I’m just saving it to hold onto that dollar. Cause it’s not gonna do anything for you and inflation. You’re losing money. So you have to get to a place where you can save to offload it because you know, if you invest it, it’s going to get you to return.