My eBanc

Seeing your assets grow can be a great feeling but so can knowing you have the financial liquidity to enjoy life. Balancing both of those is definitely possible, and there are several things to consider when it comes to the best ways to grow assets and still spend money on the things you want and need. If you find that balance and maintain it, you can enjoy all the things in life that are meaningful to you, and you can also feel secure about the future, your retirement, and any gifts you want to leave behind for others. But to do things that way, you’ll need to choose the right assets, be patient, and make some decisions.

What Investment Vehicles to Choose

To find the balance you’re looking for between seeing your assets grow and maintaining liquidity in your finances, you’ll need to focus on a diversification of investments. If you put all your money into liquid assets, you’re not likely to see the growth you’d like. But if you put all your money into assets that can grow well over time, getting that money back isn’t always easy. Often, getting it out also comes with big penalties, tax implications, and other problems as well. Because that’s the case, you should focus on a strategy that keeps a percentage of your assets liquid while keeping the rest in options that will grow well. For proper growth, you need proven investment vehicles that pay off, such as mutual funds, stocks, bonds, or even real estate when done correctly.

Keeping Your Finances Liquid

For the part of your finances you want to keep liquid, there are several methods. Checking and savings accounts are the most liquid, along with actual cash kept in your home. But keeping a lot of cash around can be risky, and checking and savings accounts don’t generally provide any reasonable rate of return. While you may not be really growing your liquid assets, they can still work for you to some degree if you handle them carefully. Consider more than one bank account, choose those that offer the highest interest payments, and focus on other investments where you can get money out right away with little to no penalty. That will keep your finances liquid and easy to access.

What Percentages Do You Want?

The percentage of liquid assets to growth assets is up to you, and there is no right or wrong answer to this question. But two things you ought to consider are your age and what you’re planning for the future. Younger people can generally have more risky growth strategies, and as they age, they’ll adjust those strategies, so they can have less growth but also less risk. Younger people may also need to keep fewer of their assets liquid because they often don’t have as many emergencies, such as unexpected medical bills. But your life is your own, and the percentages you have of growth and liquid assets should be your decision.

Is It Time to Make Changes?

If you’re finding you aren’t getting the growth you want with your current assets or you don’t have enough liquidity to feel comfortable, it may be time to make some changes. There are often ways to adjust things without making sweeping changes to your entire portfolio or strategy. Then you can have options you prefer, which work better for you than the ones you currently have. By doing that, you’ll be ready for any emergencies that come your way, but you’ll also keep growing your assets for a great future.