Now that you’ve got control of your cask, the assumption is that you have more money coming in than going out the spigot. That means cash is building up inside the cask. That should make you feel good.
I’ve always been a champion of the “little guy”. He/she always seems to get lost in the financial morass or society. The little guy doesn’t have enough money to be interesting to the financial giant but they do have some cash and are taken advantage of. The little guy is like a bug under the shoe of big money managers. Squish, squish. Just a blot on the sideway of financial history.
When you struggle to save some money, even a couple thousand dollars, it is tough to invest anywhere. You can go to the Credit Union. They give free checking if you maintain a minimum balance. Or you might go into a savings account that pays 1.5%. Whoopee! Or you can go the the local Bank. Same thing. The point is that you have money sitting in the Bank earning almost nothing. A hybred offered by many financial institutions is a “money market account” that pays even less interest but you can write checks on the account.
At the opposite end of the spectrum are the people who have lots of money. Banks, brokers, and fiancial advisors can’t wait to help them. That is because they can get paid for their advice. If you have $10,000 you can buy a bond that gets 5.5%-6% interest. That is a lot better than 1.5%. If you are young and are looking at the long pull, stocks return 11.7% annually every year over a 30 year time horizon. That also is a lot better than 1.5%
As John Lennon sang “Imagine”, just think if you had $1,000 being invested at 11.7% in stock just like the big guy, at the end of the year you will have another $117. So you total for doing nothing except investing like Donald Trump would be $1117. Not bad!
Because you might need your $1,000 for an emergency and because you can’t find a liquid investment that pays more than 1.5%, your $1,000 just doesn’t grow. You are in financial neverland. Squish, squish.
Maybe my line for having little money should be “Splish, splash I was taking a bath”. A financial bath.
To turn this into a positive, get beyond being a little guy. Here is another key to getting rich. Save up that $5,000, $10,000 or $20,000 that you can invest and don’t need for daily living. You can then make it multiply like the big guys. Then you can stand eye to eye with the financial guru’s and kick them in the groin.
Love,
Dad (Just Chas.)