Money Monday! Question of the Day!
I get this question often and I love the answer. People always expect me to say INVEST IT but I NEVER DO. 🤣
The real answer is you should INVEST in your financial education!
This means you might need to start reading financial books, break out a pen and paper (or an excel spreadsheet) and find out what your money is up to. Sometimes the best free and cheap option is having a circle of friends or a mentor who is comfortable talking about money and wants to build long-term wealth. (I'll admit finding a circle was hard for me at first but they do exist I promise, that's why I'm your Wealth Bestfriend remember😁).
Another option is to speak with a fiduciary advisor (you'll know you have the right one if you ask them what to do with 30K and they DON'T initially say LET ME INVEST IT FOR YOU or I've got a great investment for you). Remember to interview them.
Before you do anything you need to have a plan and set some goals.
You need to understand yourself, and your behavior. Are you risk-averse, or are you the type that will go all-in on black in Vegas? Are you a spender or a saver? Do you have a budget that helps you spend responsibly? What do you know about investing?
When my clients come to me wanting to throw money in investments I tell them to either take my investing course to make sure they understand the absolute basics, i.e. the type of account they need to set up, how to fund the account, and the process of investing will look like. Or I tell them to watch the stock market. I send them a Stock/Index fund Watch List. (If you sign up for the Wealth Tips emails you will receive this watch list too😎. If you haven't already signed up the link is below.)
Watching the stock market will help you understand the wild swings, shifts, and sometimes DIVES the market takes (sometimes for seemingly no reason at all). This will help you understand if you are the type of person who needs to do your research pick your stocks then STOP watching the market or if you have the discipline to tell yourself you could lose it all and still wouldn't touch it.
I argue for researching, and investing for the long term and continuing to learn. To truly invest you need to understand taxes, accounting, business, the economy, fees, and the types of assets you can invest in. It's A LOT of information so the best thing you can do is just start watching, listening, and learning. If you have a 401(k) start there before investing outside for retirement.
Most of all make sure you have an emergency fund that can take care of all your expenses and unknown life happens moments for at least 6 months. Then pick one of the index funds you've been watching for a few months and try your hand at investing when you feel comfortable.
Your Wealth Bestfriend
💜💛💜💛💜💛 LAKER NATION!! 💜💛💜💛💜💛
Jala Eaton, Esq, CTFA is an estate planning attorney, fiduciary, and fiduciary advisor with a mission to help business owners and families build and protect their assets through investing and estate planning. The racial wealth gap is the problem and Generational wealth is the goal and the solution. When not advising her clients or talking about money on her blog and Instagram she likes to attend concerts and the private dance parties her daughter holds in their living room.