If you’re looking to earn as much as you can, you’ll need to make a few tweaks in your income plan. Your goal should be to have a cushion, not a cushion and a surplus.
Money is a great place to stash some extra cash if youre on the low side. The problem is that most people tend to hoard money that they feel they need, and that can quickly go to waste. You can’t really “stuff” money in your piggy bank, because you need to actually use it to make something. You can stash money away in your checking account, but then you can’t really use it for anything.
Well, what to do with it, the problem is once youve deposited your money into your checking account then a lot of that money will just sit there. You can put it in savings, you can put it in a Roth IRA, but you cant really use it. Saving money is the best way to store it for later, but that doesnt mean there isn’t another way.
How about you invest it? In stocks, bonds, and mutual funds. These stocks, bonds, and funds are all different instruments that can be bought and sold, and the value of them changes over time. You can also invest in real estate, and you can buy and sell real estate with your money. Your funds in stocks, bonds, or real estate can be used to buy and sell other things, as well.
You can also invest in real estate with your life savings, and your life savings can be used to buy and sell other things. The value of your life savings changes over time (or so the theory goes) and is based on the value of your stocks.
You can also invest in stocks, bonds, and real estate with your life savings but they’re all subject to fluctuations in value. The stocks are, in general, more volatile than bonds or real estate because you’re more likely to be disappointed with your investments than with real estate. That said, you can make a case for investing in stocks and real estate because they have some special benefits.
Bonds have the added benefit that you can’t be taxed on your gains once you’ve withdrawn them from the market and you can pass through gains tax free. That means you can use your taxes to buy more stocks and real estate, thus increasing your wealth over time.
This is a bit of a “what-the-hell” situation. Bonds and real estate are not taxed the same as stocks, so you can invest in both and benefit both from the tax-favored market. But if your investments fall into a bad period, you can lose all of your gains, which means you have no choice but to sell some bonds or real estate and hope they recover in the future.
This is a bit of a challenge, since real estate is exempt from most losses, and you really don’t want to lose all of your real estate. So you should probably hold off on selling. But if you can pass through gains, you can use your tax-free gains to buy more stocks and real estate. With a bit of luck, you can live off of both for a while.
It’s a bit of a gamble, since you wouldn’t want to sell real estate and stocks at the same time, but it’s a risk worth taking for the long-term goals.
