Trade The Journey

Trade The Journey

Today is the day, God Made!

Excuse my religious reference if you don’t share the same beliefs that I do. I do believe in God.

My proof?

I guess at the moment it would be a theological conclusion because I believe GOD’s ways are unknowable.

 

We all need the inspiration to make the right decisions with our time and resources. How you create the inspiration is up to you!

The lesson of the week for me is that Big Money is always moving. Big money is always moving to places where it can earn the best rate. The rate may vary depending on the risk and the goal for the money in the future.

 

I’m actually referring to interest rates when mentioning rates.

Interest Rates = Price of Money.

 

Only in our lives does money standstill, waiting for its direction. One measurement you’ll see in any evaluation is the short-term treasury rate. This rate is thought to be the baseline for what an Investment can earn risk-free.

It is thought that because the United States is the leading world power, its chances of default are slim to none. Imagine being able to print money to service your debts. Of course, the value of the money decreases, but that’s another story for another day.

This short-term treasury rate is thought to be a rate you could be earning instead of investing in a risky asset. This rate is not the same as you receive in a savings account.

The bank does not have to pay you anything close to the treasury rate, and it doesn’t. If the bank paid high rates for a savings account, it would have to charge a higher fee to loan money.

 

The bank has to make money to!

 

So the bank has money moving. The banks’ capital is always moving. If there are excess funds available, the bank will loan the funds out. I’d imagine nothing is more wasteful to a bank than money idling, not earning a return.

 

This is the mindset we have to adopt. Our money has to be either earning or returning. 

 

And herein lies the difficulty, rerouting money from its expected purpose of fulfilling us with momentary happiness and paying our bills. We depend on this happiness to keep us going through the week. This is especially true if we work at a job we hate or have bills that need to be paid.

But I say to you that money that has returned after earning multiples in amount and in the happiness it brings. Sounds like a quote from the “Richest Man in Babylon” doesn’t it?

Money set aside as resource brings relief while also strengthing your purpose.

 


This week, I did my best to keep this mind. The wholesale purchase I spoke of in the previous post has been to my benefit. I haven’t stopped at a gas station to purchase snacks or a breakfast cookie in two weeks.

Other besides the cut in spending, I increased the amount contributed towards my savings account to prepare for the times ahead.

Everything points towards a significant shift in volatility both in life and in the markets (Stocks, Bonds, Futures, Currencies, etc.) for the foreseeable future. The various markets mimic the sentiment of the people in varying degrees. Some of the best minds on planet earth are in the markets attempting to forecast what will happen next, profitably!

 

So what will happen next?

Are you prepared?

Questions? Concerns? Corrections?

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