In a recent post, we tackled the problem of how to save money. The next logical action is to put our money to work. As we’ve mentioned before, the first and best “investment” you can make is any education that will help you increase your cashflow. As we normally invest from our abundance, cashflow is king. The topic today is investing in actual market based assets that are relatively liquid, such as stocks, bonds, etc… Because we publish our own newsletter that helps subscribers manage their 401k’s, I won’t tell you our precise methodology. However, at the same time, our real goal is to empower readers to a better future. That being said, If you cannot afford the $9.16 per month for an excellent investment strategy, I at least want to give you enough information so that you can do something to improve your performance and protect your savings.
You may be asking yourself “What does a pencil have to do with managing my 401k better?” The greater part of doing, is knowing. If you want to make money in the capital markets, you have to understand “Capital-ism”. Here’s a simple lesson from Milton Friedman about how capitalism brings about voluntary cooperation. Intuitively we already know this and many perhaps cannot imagine any other type of cooperation that isn’t voluntary. Trust me, it exists and you wouldn’t like it.
The short essay written by Leonard Read can be found here. In your own investing, understanding production requirements can also help understand how specific sectors benefit while others lose through technological or economic changes.