Dave Ramsey
Has been updated: April 24, 2023 at 1:16 PM
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dear dave,
We plan to purchase another investment property for cash in the next year or two. Currently, he has $83,000 in a high-yield savings account with an interest rate of 4%. My goal is to save an additional $50,000 to $70,000 over the next few months. 4% is good enough for now, but we want to be able to maximize our revenue. Should I do something else with that money?
— Brett
Brett
I like the way you do At this point, we’re just short-term parking our money for purchases a few months ahead. Investing may earn you a little more, but it also comes with more risk. If I were you, I’d be parking cash.
Here is the deal: The money needed to purchase another property is not derived from the return on the investment. It comes from you putting money into the account. Investing is not a secret sauce in this scenario. If you invest your money and earn 10% in two months instead of 4%, that’s about a 3% difference. It’s nothing in your case. At the moment, it’s not within a few thousand dollars to make a trade. Your trade is a $150,000 trade. Your return on investment will neither make this happen nor stop it. do you see what i mean?
Keep doing what you’ve been doing and save money. that’s what i do. Math geeks like us always look for things to solve the investment. But sometimes it’s up to you to settle the investment. You are the one making the investment. You are the one putting money in your account. So don’t try to fix it in this case. Just stack the money and go for it.
Good question, Brett!
— Dave
