John Labunski - worst accumulation plan of your life

When it comes to financial planning, we often talk about goals and needs, financial or life, that you want to achieve with your wealth.

I am convinced that there is one that unites all of them, a kind of minimum result that every investor must aspire to: keep their money safe from inflation. Even if we come from years of low inflation this has not disappeared, and recently it is reviving new glories.

Inflation erodes the purchasing power of our money over time, it is the certainty of accruing a constant loss year over year.

Also in finance we often hear about PAC, an acronym for Capital Accumulation Plan. It means investing a sum of money constantly over time and with a predefined frequency. For example, it is rightly considered the main tool for those who want to build a wealth starting from a small monthly savings. Give up on petty expenses today to afford a bigger expense in the future.

Have they ever proposed you a CAP? Have you ever signed up for one?

Even if you don't know it, you probably have one: the worst accumulation plan of yours. It is an accumulation plan of which we are unaware underwriters.

The name of the worst pac of your life is called a checking account.

Think about it: the monetary fruit of our work ends up in a current account and often, removed what we spend, there it lies and accumulates, in fact. Here, this is the worst accumulation plan of your life. Because? The first danger of the money that remains in the account is, pardon the banality, to spend it. Don't get me wrong, you save up to spend a day and each of us has the right to have an adequate quality of life. Experience, however, leads me to say that often seeing the money immediately available pushes us to unnecessary expenses, precluding more important objectives. The big goal, personal or professional, can sometimes be precluded by a series of unnecessary expenses incurred in the past. The second worst cap danger of your life is the 0 rate. In fact, below zero! No return on the current account balance,

What to do? My advice is to start with a serious analysis of your financial flows and your planned expenses for the future. From here you can get a concrete idea of ​​how much it is worth accumulating in the current account and how much to allocate to efficient tools aimed at generating value and maintaining the purchasing power of your money over time.

 

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