Get Started Investing

My Personal Investment Strategy

Listen Money Matters is reader-supported. When you buy through links on our site, we may earn an affiliate commission. How we make money.
my investment strategy
Table of Contents  

The finer points of my personal investment strategy including emergency funds, checking and savings accounts, and investing beyond Betterment.

An emergency fund is vital as we discussed in Episode 64. But we define that a bit differently than a lot of people.   You should not have a savings account.  You need a checking account that contains one month’s expenses plus 150%.

So if you spend $2000 a month, your checking account should contain $5000.  In lieu of a savings account which makes less than 1% interest, you should use a tool like Betterment to stash your emergency fund.  The money here will grow at an average of 7% a year and is liquid within a few days.  This is controversial to some but it is not risky.  This account should be funded up to $25,000.

Should you participate in your company’s 401K?  Never turn down free money. If your company matches, you should contribute the same amount into a 401K even if you have credit card debt.

Always say yes to free money.

Tweet This

Now things are a bit more comfortable.  Between your checking account and investment account, you have about $30,000.  This is your working capital.  We’re comfy now but it’s no time to get complacent.  We’re going to take a little risk by investing in something like individual stocks or a fund with a company like Vanguard or Fidelity.

The next step is for advanced investors with $100,000 or more invested.  You can afford a little more risk.  Andrew has had very good returns with Lending Club.  Not for the faint of heart but the rewards can be enormous.

Don’t forget, we’ve also put together a list of the top vanguard funds we know about – you should check them out!

Now go out and be the best investor you can be!

Show Notes

The Ultimate Investment Strategy Blueprint:  Andrew’s recent blog article.

Vanguard: A low fee investment management company.

Betterment:  Where your emergency fund should be stored.  Use this link and get six months free investing!

Nominate our Podcast for a FinCon Spotlight AwardWe all know someone in the FinCon Community or beyond that is doing interesting, far-reaching work to help people with their money.

Candice Elliott - Editor-in-Chief Candice Elliott is a substantial contributor to Listen Money Matters. She has been a personal finance writer since 2013 and has written extensively on student loan debt, investing, and credit. She has successfully navigated these areas in her own life and knows how to help others do the same. Candice has answered thousands of questions from the LMM community and spent countless hours doing research for hundreds of personal finance articles. She happily calls New Orleans, Louisiana home-the most fun city in the world.

What's next?

learn podcast popular toolbox search