Money Loves Speed so Keep it Moving

3 months ago
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You have to actively managing your investments to counteract inflation. Letting your money sit idle 𝘨𝘶𝘢𝘳𝘢𝘯𝘵𝘦𝘦𝘴 a significant loss just based on normal inflation, which has ranged from 2 to 10% in recent years.

Money loves speed. The concept of "velocity" in investing refers to how quickly you can turn over your money—from loaning it out to getting it back with interest for example. This cycle of investment and return is crucial for growing your wealth. But just as important as speed is understanding your own criteria for lending. Rushing decisions without knowing your risk tolerance can lead to costly mistakes.

𝗖𝗼𝗺𝗯𝗮𝘁 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻: Idle money loses value. By actively investing your IRA funds, you can protect and grow your wealth despite inflation.

𝗩𝗲𝗹𝗼𝗰𝗶𝘁𝘆 𝗼𝗳 𝗠𝗼𝗻𝗲𝘆: The faster you can turn over your investments, the more you can capitalize on interest payments and reinvestment opportunities.

𝗞𝗻𝗼𝘄 𝗬𝗼𝘂𝗿 𝗖𝗿𝗶𝘁𝗲𝗿𝗶𝗮: Establish clear standards for what makes a qualified borrower. This ensures you make informed decisions that align with your risk tolerance and financial goals.

𝗔𝘃𝗼𝗶𝗱 𝗥𝘂𝘀𝗵𝗲𝗱 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀: Taking the time to understand each investment opportunity prevents hasty decisions that could jeopardize your returns.

How do you ensure your investments are actively working for you?
What criteria do you use to evaluate potential borrowers?
Share your thoughts and experiences in the comments below!

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