Why You Need to Bucket Your Money with Jesse Cramer
Nov 13, 2023
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Jesse Cramer, a personal finance expert, discusses the bucketing strategy for managing money. Topics include organizing and investing for different timelines and goals, common money mistakes, measurement and tracking finances, understanding risk tolerance and asset allocation, and the meaning of wealth and flexibility in life choices.
Bucketing your money involves dividing your liquid net worth into different buckets based on specific timelines, matching investments with the risk and reward for each bucket.
Tracking and measuring your finances is essential for making informed decisions and improving your financial situation.
Wealth means flexibility and the ability to make choices that align with your values and goals, providing happiness and fulfillment.
Deep dives
Investing in Real Estate with Fundrise
Fundrise offers an easy way to invest in real estate with their flagship fund. Demand is dropping and prices are falling, which makes it an opportune time to invest. The Fundrise flagship fund plans to expand its billion-dollar real estate portfolio over the next few months. Investors can add the Fundrise flagship fund to their portfolio with as little as $10. It is important to carefully consider the investment objectives and risks before investing.
Bucketing Your Money with Jesse Kramer
Jesse Kramer, from the Best Interest Podcast and Blog, discusses the strategy of bucketing your money. Bucketing is an investment exercise that involves dividing your liquid net worth into different buckets based on specific timelines. For working individuals, the buckets may include short-term expenses, big savings goals for the next few years, and retirement savings. Retirees have similar bucket categories but with different allocation amounts. The key is to match the investments with the timelines, considering the risk and reward for each bucket.
Measuring Your Finances
One of the biggest mistakes people make is not measuring their finances. It is essential to track and understand where your money is going so you can make informed decisions. Whether it's using budgeting apps or simply checking your bank account regularly, measuring your money helps you manage and improve your financial situation. Overcoming the fear of the unknown and taking control of your finances is crucial for long-term financial success.
Building a Personal Finance Business
Jesse Kramer shares his journey from being an engineer to working in the personal finance industry. He started The Best Interest Podcast and Blog, where he provides financial advice and content. Jesse finds fulfillment in helping clients with their financial planning and creating content that adds value to his audience. His passion for personal finance and the positive impact it can have on people's lives drives his work.
Flexibility: The Essence of Wealth
To Jesse, wealth means flexibility. Having financial flexibility allows you to have choices and options in life. It's not about having a specific material possession but having the freedom to make decisions that align with your values and goals. Wealth provides the ability to adapt and enjoy different paths in life, leading to happiness and fulfillment.
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