Make Your Money Work For You: “Little Green Employees”

So you’ve been following our budget tips. You’ve been saving and have found new ways to get more from your money. You’re creating a fulfilling, abundant life while spending less.

Now what?

You should aim to have about 6-8 months’ worth of living expenses in a highly liquid emergency fund. If you run into some unexpected expenses, you don’t want to add the stress of wondering how you’ll cover bills and basics.

Then, once you’ve accumulated an emergency fund, it’s time to invest.

To borrow a quote from “Mr. Money Mustache,” the personal finance blogger who retired at age 30, “instead of thinking of ‘savings,’ think of ‘investments.’ Like little green employees, each dollar bill needs to be kept at work for you at all times.”

With a pure savings account, you will actually lose money over time relative to inflation. Having your money in savings alone is the equivalent of modern-day mattress stuffing. You want to have your money in the financial markets, where it can create more money! I can’t say this enough: the beauty of investing is that your money can grow over time. You’ve worked hard to earn and save – shouldn’t each of those dollars be working just as hard for you?