Invest Everything Above Your Savings Target in Your Long-Term Portfolio
Prefer to listen rather than read? Pair this post with Deliberate Money Moves Podcast: Invest Everything Above Your Savings Target in Your Long-Term Portfolio.
Your Savings Target is the amount you want in savings so by definition, anything above this amount should be invested in your Long-Term Portfolio. Of course, your balances will move around but we don’t want excess cash to sit in savings for very long.
Every Dollar Has a Job
The dollars that are part of your Savings Target have the job of simply being there and being available when you need them. If you have more dollars than you need in savings, then they are not doing their job – which is to grow for future use.
We want those extra dollars working for us, and since we know we won’t need them for at least five years, we want them invested in the Long-Term Portfolio. Use this guide to manage your savings balances so that you always have what you believe you’ll need, and you’ll always be maximizing the amount invested for future growth.