C.R.E.A.M

Cash is how we communicate with each other, it is how we interact with one another.

Whether it’s buying goods from the local grocer or purchasing something from someone half way around the world who doesn’t even speak the same language.

It’s the tool we use to be able to do the things we want to.

However…

Over a long enough time frame holding cash is a terrible asset. This is because it’s purchasing power will erode over time. This erosion process is called inflation. It is the silent killer to our wealth.

This is why our economic machine rewards participation. It wants us to take a so called ”seat at the table”. This could be through investing in ourselves, by starting a business or taking an online course. Maybe, purchasing an investment in real estate or buying pieces of business on the stock exchange.

Understanding this inflation risk can help when making the decision to invest or not. As long as you’re saving regularly and you’ve payed down unnecessary debt and have built a nice emergency fund the investment decision will be a lot easier.

Buy a few books, read a few blogs, and find what investment class is right for you.

For us, we are hands off passive investors as it suits our personalities. We also prefer the simplicity of this strategy.

This free’s up our time to do more of the things we love doing. Like running and reading and for my partner it’s dancing.

Try not to get what we call analysis paralysis. Don’t sweat the small details just have a go. Investing with common sense and a longer time horizon is your friend. Remember wealth is something that won’t make you happier but will give you more control over your time and most people systematically undervalue their time.

Cash is a great tool for day to day use but over the long run it is investing that will carry most of the weight towards the life of freedom we all want.

J.H.Repetto