Save Cash or Invest?

[Alex Wise]

What do you recommend for short term savings?

I’ve been a bit timid with purchasing my first investment property. Analysis paralysis makes me hesitant at this time with interest rates what they are and anticipating a recession. I don’t want to be too speculative of how the recession will impact the real estate market, but IF there’s more inventory available and IF there are more buying opportunities to find deals (or even time the market for stock investments) I want to be ready.

So how do I prepare my finances?

When saving cash, we hear about inflation and losing value in cash. Part of me wants to turn to my brokerage accounts but that’s essentially a gamble.

How are others preparing their money for potential purchases to come? What finance vehicles or methods are you using?

[James Dainard]

Hey Alex,

This is a great question and really depends on your timeline.

If you think you're unsure to the point where you'll sit our for a while you'll probably want to put your money safer, longer-term investments.

If you're thinking about jumping in soon you might want to keep that cash on hand or in assets that can easily be liquidated to be able to make the move when the time comes.

You can consider some higher risk/reward investments based on your comfort but I'd recommend minimizing the percentage of your portfolio you expose to those asset classes.

Best of luck!