E161- Where You Should Put Your Money

Connect with Our Guest

Subscribe to Chain of Wealth

Join 34,879 Monthly Listeners

Subscribe to Chain of Wealth

Join 34,879 Monthly Listeners

Pro Tip: Timestamps below are clickable. Click on the time below in the brackets and the audio will start playing at that part of the show.

Nobody really tells you what to do with your paycheck, people don’t know what you should and shouldn’t do so today’s episode deals exactly with that.

[1:40] Where are you putting your money Kate?

  • Until recently (the last year) all of Kate’s money was kept in her bank account
  • The money would rollover from a checking account from the savings account
  • The big mistake with this is that it has an extremely low interest rate. Most investments are in the region of about 8%, savings accounts are typically below 1% and actually make you lose money as inflation is higher than the interest you’ll earn in a savings account
  • Kate’s currently putting her money in mutual funds and stocks she uses her Robinhood account
  • She makes sure that all her money is working for her
  • There’s a common misconception that just because you have stock they aren’t liquid, but you can quickly sell them and convert them into cash

[6:30] A ton of people make the mistake that they aren’t responsible with their credit cards

  • Lots of people live off their credit cards but they don’t pay them off in full
  • Kate takes advantage of her credit cards to get points but she pays them off in full to avoid paying any interest
  • Denis pays off his credit cards the moment he gets paid to avoid late fees and interest

[8:00] It takes some getting used to realizing that you can just liquidate your funds.

  • Denis had a situation where he hadn’t been paying state tax all year, he wasn’t enrolled into state tax
  • The mistake came about because he didn’t check his paystubs
  • He was notified he had to pay 10 months’ worth of tax – 5.75% multiplied by your annual salary times 10/12
  • When Denis was told he needed to pay the money, he was able to sell off stock he didn’t want anymore

[10:58] If you build up an emergency fund you can eventually start using the money for other reasons like putting money into an IRA

  • There’s a common misconception that you aren’t saving because you can liquidate your portfolio, this isn’t true as most people still have separate savings accounts
  • You should treat it as an account that you can’t draw from, it should be set aside for longer term things.
  • You don’t have to have your money invested in the stock market just because it’s in a particular account.

If you are interested in opening up an investing account check out robinhood.

Enjoying Our Podcast?

We have over 150 episodes to listen to! Join over 2,167 daily listeners that pursue financial freedom.

By entering your email, you agree to our Terms of Service and Privacy Policy.

About the Podcast
Chain of Wealth

Chain of Wealth

The Chain of Wealth podcast is a biweekly podcast boasting over 300,000 downloads. We interview inspirational guests about money topics. You can learn more about us here.

Share On
Share on facebook
Share on twitter
Share on linkedin

Leave a Reply

Your email address will not be published. Required fields are marked *