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The following is a guest post from our friend John at Frugal Rules. If you are interested in guest posting at Club Thrifty, please see our guest posting guidelines.
Welcome Club Thrifty readers! While Holly and Greg enjoy their resort vacation, they’re allowing me to share my musings on growing money with you. Let’s face it, not many of us want to put in 40-50 hour weeks forever; we want to be able to enjoy life as we get older. Whether that means you travel in retirement, volunteer or pick up new hobbies, many of us view retirement as a time to be able to enjoy the things we did not have the time for when we were younger.
Mind you, I am not espousing a retirement where you sit on your a$$ watching life go by and not being a productive member of society, but one that you get to enjoy the fruits of being able to choose what you want to do because you have become financially independent. That begs the question – how do I get to that place where financial independence is a tangible reality? Whatever your answer is, it is incredibly shortsighted to think you’re going to get there by burying your head and putting your cash under your mattress. The key to growing wealth is investing it and taking on some risk.
There is a common saying that goes, “Those who fail to plan, plan to fail.” This is ever true when it comes to growing wealth that lasts a lifetime and hopefully beyond. View this plan as you would usinga map for a vacation. You won’t get to your destination without your map, and a plan is the same for saving for the future. As a part of my plan, I aminvesting in the stock marketwith hopes to build solid wealth as the years go on. Investing in the stock market is not fool-proof, nor is it free from risk, but being in the stock market (in some form or fashion) is vital to building wealth. If you’re not certain where to start investing, then the best choice might be some low-fee index funds or some solid dividend paying stocks. Either, in general, is a great way to get started at building wealth for the future. Unfortunately, your mattress offers very little in terms of wealth creation.
Spring Your SavingsIntoAction
The key to any plan to growing wealth almost certainly has to be time. Time is the greenhouse to your money’s growth. If you wait and wait, then you’re going to see the results and find your later years to be potentially more difficult because you HAVE to work as opposed to having the choice of whether or not you WANT to work. Don’t allow lack of massive funds to hold you back either. When it comes to saving for retirement, don’t make excuses. If you can only afford $50-100 per month to begin with, great, start with that and you’ll be amazed at how it works for you in the long run. That little bit invested now can reap good returns in the long run, plus it develops a discipline of saving and investing that will last a lifetime.Saving for retirementcan be a daunting proposition, don’t let time passing you by make it even more difficult. The moral of the story is to start now!
Don’t Box Yourself In
Nearly as important as time in regards to your investment plan is being fully diversified.I know that your co-worker might have given you a “hot stock tip” and you decided to throw everything at it. However, I am sad to say that wealth creation generally does not happen in this way. The stock market is known for being temperamental (just look at the past few years). You can, to a certain extent, weather those storms by being fully diversified among asset types and classifications. If investing in the stock market is not your thing, then there are many other things, like real estate for example, that you can invest in that will further diversify your overall portfolio. Like it or not, your mattress is unable to offer you the growth you need; being appropriately diversified is a much sounder approach.
What are your thoughts? Have you been able to find that magic mattress yet, or do you have a plan for your wealth creation?
John is the founder of Frugal Rules, a finance blog that regularly discusses investing, budgeting, and frugal living. John is a father, husband, and veteran of the financial services industry who’s passionate about helping people find freedom through frugality. Follow him onTwitter.
Like, imagine you saved $10 today. But in 10 years, because of inflation, you might need $15 to buy the same stuff that $10 could today. 😓 So, the cash under your mattress or in that piggy bank? It's not growing.
Keeping your money in literal, tangible cash makes it extremely vulnerable. You could be robbed, or there could be a flood, a fire, or a pest infestation that snacks on your dollars.
"Hiding money under the mattress" is a classic way of describing someone who is thrifty. However, economists argue that literally putting money in your mattress would cause you to lose money in the long run.
If you want to build or maintain a healthy financial life, then keeping your money in your mattress is probably not the best place to start. Budgeting however, should be your fundamental starting point. After all, how can you tell you're on track if you don't know where your hard-earned pay-cheque is going?
Bad quality sleep can be a direct result of sleeping on a bad mattress. Investing in a mattress that will address your body's needs will improve your quality of sleep, and quality sleep will improve your quality of life.
You've likely heard or seen references to people hoarding large sums of money under their mattress. Well, where did this start? Historical references explaining exactly how the bed became the de-facto place for people to hide their cold, hard cash are limited.
Where is the best place to save money? The best places to save money include high-yield savings accounts, high-yield checking accounts, CDs, money market accounts, treasury bills and savings bonds. These products offer varying degrees of security, returns and liquidity.
The coin is associated with good financial condition and health. Before sleeping, you should place it in the East, and see its benefits. It will also attract good fortune.
Mattress money refers to funds without any kind of documentation— as if it were cash that was stored in a mattress, Kiker explains. Mattress money cannot be used for a downpayment or to pay other expenses associated with the transaction.
If you've already got mattress money, open a new savings account and deposit the full amount in. You'll need to let this balance “season” for two to three months in order to prove it's yours. You should also let your lender know about the stowed-away cash as soon as you start your application process.
If you're worried about negative energy in your room, you might want to avoid storing nostalgia like papers, photos, souvenirs, or old clothing under the bed. According to Feng Shui teachings, these items can carry emotional energy and interfere with sleep.
Newspapers or books: Do not keep anything related to studies, newspapers or books, under your pillow. Keeping such things under one's head increases the effect of negative energy in life.
One of the reasons cited in astrological beliefs is that water represents fluidity and energy. Placing water near the head during sleep might disrupt the flow of energy or create disturbances in the subconscious realm, potentially affecting the quality of sleep or invoking negative energies.
Poor sleep quality has been linked to various health problems, including obesity, diabetes, heart disease, and depression. By prioritizing your sleep and investing in a comfortable and supportive mattress, you can help improve your overall health and well-being.
One of the main factors is the quality of materials used, with high-end mattresses often incorporating premium materials such as organic cotton, latex, and memory foam. Additionally, more expensive mattresses may feature advanced support systems and technologies, such as pocketed coils or adjustable bases.
The wrong mattress can leave you weary, cranky, and sleep deficient. These conditions may increase the levels of stress hormones within your body. An increase in sleep quality provided by a quality mattress can help reduce discomfort, irritability, and nervousness as you lay eyes shut.
Don't try to store anything bulky, like sweaters or ski jackets because they take up too much space. Linens: Keep your extra set of sheets and pillowcases right under your bed. Shoes: Store only your most-used shoes in your closet, and keep the shoes you wear less regularly under your bed.
Keeping a coin under your pillow while sleeping is a practice found in various cultures and traditions. It is often associated with superstitions and beliefs, and the advantages are typically based on folklore rather than scientific evidence.
Vacuum sealed bags are a great solution for under-bed storage, Kilgore says. “If the storage will be seen, use some baskets, and store items in vacuum-sealed bags in the baskets,” she says. These bags are best for clothing and seasonal items, like sweaters as well as extra bedding and towels.
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