Michael on October 4th, 2007
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If you’ve never invested before and the idea sounds intimidating, remember: you are already doing it.

You: That doesn’t even make any sense.

While you may not have made any financial investments yet, you choose how to invest everyday. For example, your daily activities are the result of a series of investment choices about how you’ll use your time. You choose to do certain activities. You decide not to do others. Throughout, you hope that your payback, in whatever form, is greater from the things you chose to do compared to those you decided not to do. Investing money works the same way–you choose among various financial options, hoping to meet your financial goals.

You: Okay, but that’s just time. What about money?

Well, if you have any money saved, you are investing.

You: No, I’m not. All my money is in savings.

Your savings account is, technically, an investment—just not an aggressive one. So even if you don’t choose to take your investing to the next level, you are making an investment decision with your savings account: you have selected one of the most conservative investment possibilities available.

You: “One of the”? What could be more conservative than leaving my money in a savings account?

There’s always the mattress.

Still, keeping all of your savings in a very low-risk vehicle such as a savings account will cost you. You’ll miss an important opportunity for growth compared to someone who chooses a more aggressive investment strategy.

Remember, don’t be afraid to invest. You already are. Soon, we’ll talk about why people should be far more relaxed about investment decisions and be able to live Beyond Paycheck to Paycheck. In the meantime, are you investing? Or are you living paycheck to paycheck?

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