saving

How I allocate funds for Trading, Saving and Investing? Where do I put most of my money?

 These are rounded numbers, but you may get the point. I was suprised when I looked at the numbers and saw that I was sitting on half cash and half equities. It pretty much reflects my personal bias and uncertainty with the market right now. Let me explain.

Savings: The Fed is punishing those who save. You have to tie up your cash for 30 years to get a decent return on your money in a CD. No thanks. So for the immediate future I have very little sitting in my savings. Most of my money is being put to work in my day/swing trading account. Savings account is 10% of total assets.

Do you practice money management? Do you know where your money is going? A lot of us just spend or charge and look at the credit balance or bank account after the fact. It is so very important that you plan out your weekly/monthly budget. It sounds boring I know. But when you see your saving and trading accounts grow it definately makes up for the lack of initial excitement. 

 A few key things you may consider before you buy that big ticket something-or-other:

I must admit that I am still a baby when it comes to managing my own funds. I am 36 years old and this process will undoubtedly take me my whole life. But it's something I enjoy doing. What's not to enjoy? I am in the drivers seat and taking control of my finances. I am seeing my savings, investing, and trading accounts grow and simultaneuosly learing about the ins and outs of the capital markets.

Wake up call.

Saving and investing may sound boring.  It's not as sexy as the new flat screen and latest XBOX or Lexus in the driveway. I admit that it has taken me a while to get to a point where I wanted to start saving and growing my "nest egg" as it were. Two years ago at 34 I had no retirement. No savings to speak of (no credit card debit either). My financial situation was simple. "paycheck to paycheck"