When people ask me what the best way to get started investing is, my reply is always to invest in yourself. In this article, you will learn about three buckets of money everyone should have as they start moving in the direction of investing. Each one is essential, so I encourage you to implement every category into your investment strategy.
3 Essential Buckets of Money
Bucket 1: Emergency Fund
The odds are that you’ve learned the importance of having an emergency fund at some point in your life. Before you start investing your money, I believe you should have 3-6 months worth of expenses saved in your emergency fund (however, the amount of needed reserves varies from person to person.) If you lost your job this year, think about how long it took you to get a new one. If your business had months with no revenue this year, consider how long that lasted. Then, adapt that timeline to your emergency fund. If you are a business owner, I do encourage a larger emergency fund because you have more expenses such as a lease, payroll, utilities, etc..
Bucket 2: Retirement Account
I have talked about retirement accounts a lot, as well as the difference between Roth IRAs and Traditional IRAs. But, the point is that if you don’t have a retirement account, get one! The earlier you start investing in your retirement, the more money you will have and the earlier you can retire. Now, there are some restrictions and nuances, so I’ll leave retirement accounts for another blog post. Just know if you don’t have one set up then you need to get that started! Many employees offer matching contributions to your 401(k), which is a big deal. You can set that up with your HR department. If your employer doesn’t offer retirement assistance, open one yourself at an investment bank. I encourage you to set it up so that the money is taken out automatically. Then, you don’t have to think about whether or not you should invest in your retirement this month.
Bucket 3: Investments
This bucket is why you all came to the blog post, but I encourage you to set up the first two buckets first. This bucket is going to look different for everyone, so again, I’ll leave the nuances for another blog post. However, I do encourage you to set up a brokerage account with trusted investors and companies, like Charles Schwab, TD Ameritrade, etc., In this bucket, you’ll want diversify your portfolio with a) investments focused on long-term growth and viability, and b) investments focused on the short-term that pay dividends. The percentages you have of each will depend on your personal goals and circumstances. The great thing about investing in today’s day and age is that there is so much information out there! While I do encourage you to get a professional to invest your money, you can learn just about everything you need to know about the stock market from the internet.
Do you have all three buckets of money created and funded, or is there one you need to work on? Let me know in the comments below!
I am excited. We have been talking with Chad and we love him! My husband is retiring from the union today and we are already starting a plan for the new year with Chad! I am defintely signing on for the conference in Dec and cant wait to get on my way to wealth especially for the Kingdom!
That’s great to hear. We’re excited to have you and your husband join us in December!
I have my buckets.
I have my “retirement account”, and that is actually what I am drawing off of now (along with SSDI Survivors Benefit) that enables my wife and I to attend Charis Bible College 3rd year and not have to have other “jobs” at the present time. We also have 6 months worth of “Emergency Fund” in more liquid investments. My quandary is that I would like to do more in or with investments to grow our portfolio, so that we can do more in Kingdom Investments / Influence. (We are also invested in TriCord Global). Will the upcoming Wealth Builders Money Mastery workshop be of value in our situation?
Thank you for your question! If the upcoming workshop you’re thinking of is our Investment Mastery Workshop December 4th-6th, then yes! Find out more and register at: https://wealthbuilders.ticketspice.com/investment-mastery-workshop-2020
We want to offer you $100 off your registration as well! Just use the code INVEST20 at checkout.
I have the first two buckets but I do not have the third one. Can you help me?
Thank you for your comment, Patricia! We have a workshop specifically designed for the “3rd bucket” coming up the first weekend of December. It’s our Investment Mastery Workshop. It will be full of practical wisdom for people at all knowledge levels about how to invest well. Register and find out more here: https://wealthbuilders.ticketspice.com/investment-mastery-workshop-2020
We also want to offer you $100 off registration! To claim it, use the code INVEST20 at checkout.
Hello! I’ve been enjoying your material and teachings, Mr. Epperhart, for many months now, having discovered you through AWMI and their GTTV channel. What a blessing you are to the body of Christ! I am turning 61 soon, and have no debt. Back in June I set a goal to have an amount in my savings to cover a minimum of 6 months’ expenses by end of year. God is sooo good! He has enabled me to meet that goal! I am seeking education regarding my changing financial needs as I enter into my 60’s, while considering the shifting financial climate of my state (California), our country and the world as a whole, and look forward to exploring the possibilities together. God bless you, your team; your partners, students, and investors; all the families, and everyone all of these people have in their sphere of influence. I thank God for you all and the influence and impact we have in the world.