SERIES: Top 5 Ways To Improve ROI – Part 3
Welcome to the latest series on this wildly popular website – JosephSangl.com – “Top 5 Ways To Improve ROI”
ROI: Return On Investment
Everyone wants to receive a positive return on their investment. We are delaying the use of our money so that we can have more money in the future – at least that is the goal. However, many people are seeing negative ROI over the past several years. This is why I am writing this series – to help each of you make your money earn more. These are the top five rules I use to maximize my money, and it has worked out well for me.
Part 3 Maintain substantial margin in cash
If I do not maintain liquidity, it becomes very difficult for me to maintain rules One and Two. Without financial margin, I am more likely to be “jumpy” and leap out of investments when they trend downward.
Having substantial cash on hand also allows me to take advantage of tremendous opportunities – many of them may be “once-in-a-lifetime” opportunities that will require cash money right away. If all of my money is tied up in investments (or all of my money is gone), then I am not able to take advantage of these great investments.
For me, it is helpful to keep 10 to 15-percent of my money in cash or cash equivalents. I hold a lot of my savings in on-line FDIC-insured savings accounts that pay interest equivalent to a two year CD, but do not have the liquidity issues that CDs have. I really like Capital One 360 – it’s my favorite!
What % of YOUR investment money do you like to keep in cash or cash equivalents?