What Should I Do With My Money?

What should I do with my money? This is a question that I hear often. This is the one I heard the most in my life. The lack of financial literacy is the problem. The fact that money isn’t taught in school, the fact that they emphasize on following orders, memorization, and not making mistake.

University graduate come out of school with no clue on how to invest. They are well trained to be employees, but they don’t understand how money works. In other words they don’t know what to do with their income.

FAQ (frequently asked question)

I have $40000. What should I do with it? What should I invest in?

Short answer

If you do not know what to do with your money, the best thing to do is not tell anyone.

Clarification

If you do not know what to do with your money, there are many people who will tell you what to do, which is, “Turn your money over to me. I’ll take care of it for you.” Those who lost the most were those turned their money over to people they trusted.

Detailed answer

Your level of financial literacy determines how well you will invest and what you will do with your money.

More clarification

This is what happen when you lack financial literacy, your risks go up, your taxes go up, your returns go down. Most people without financial literacy invest in mutual funds, bonds, stocks, home and savings in a bank. These are the riskiest of all investments.

With financial literacy your risks go down, returns go up and taxes go down. In other words you can make more money with less risk and pay less in taxes. Also money will flow in rather than out. You can reduce your taxes and earn millions with very low risk by using peer to peer lending, crypto loans or traditional banking institution.