I Was Having A Conversation With An Investor The Other Day And Noted That Leaving His Money In His Checking Account Or In Cash, Was Akin To A Piece Of Fruit Rotting.

I said, “Think about it like a peach. When you get that peach and it’s ripe, it tastes great. You can eat the peach, plant the seed, and grow another fruit tree with a little bit of knowledge and care.”

I then explained that the alternative is just letting the peach sit and rot over time. It’s the worst option: you don’t get to enjoy the fruit AND you don’t get to plant the seed to enjoy in the future. Think about how much food we waste in the United States every day. If you have money sitting in cash, it is akin to letting your money rot.

“The creation of a thousand forests is in one acorn.”
– Ralph Waldo Emerson

The 3 tenants of Next-Level Income are Make, Protect, and Grow your money. This falls into the Grow category. You have made money, saved it and now it’s sitting in your account. If you don’t invest it, inflation begins to eat away at its value, just like a piece of fruit rotting!

Even worse, you are giving up the opportunity cost of the returns that the money could be producing. For instance if you have $100,000 sitting in a checking account earning 1% and inflation is 3%, your real return is –2%! If you put this to work in an investment earning 10%, you could spend $5,000 of your investment earnings every year and your investment would still grow faster than inflation.

A corollary to this is equity that you have in a property. What’s is the return on equity? 0%. Unless you are continually pulling money out of your investments and reinvesting, your equity is not working for you. Is this the best way to grow your money?

Do you have money rotting? Is it sitting in a bank account? An old 401k? What about equity in your personal residence or a rental property? These are all places where equity could be accessed and put to work in new investments so that your hard-earned capital can start to produce new “pieces of fruit” that you and your family can not only enjoy, but also use to plant more seeds in order to continue to grow your family’s wealth.

If you’d like to learn how I used the Next-Level Income strategy to build a portfolio of passive income investments, you can get a free copy of my book and learn how to get access to cash flow investments.