How to manage your personal finance?

Ray Dalio Says 'Cash Is Still Trash' but Stocks Are Even Worse. What assets to invest in? Vintage pen

Personal finance is a big deal, and it is increasing important to everyone. It is not only about managing your money so you can meet your financial goals, but also keeping survive in this modern challenging world. 

Are you saving money for retirement?

Most financial experts advise people to save money for retirement. Saving comes in different ways. You can save money in a savings account, put your money into a 401(k), or put money into your personal home. Yet most people are not aware of inflation (which indeed raised your alert recently for inflation Soars To highest level In 40 years). This simply means that your purchasing power is declining when you are saving. 

"Cash is trash!"

No wonder Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, emphasized ‘Cash is trash’.  

So you may try to invest in the stock or bond markets? 

Indeed Dalio later elaborated ‘Cash is still trash. Equities are trashier’. 

Instead, Dalio is focused on real assets. He explained: “We’ve shifted into an environment where assets that do well, almost like in the 70s, are real assets. Real return assets in various ways are the best investments.”

Real assets are defined as tangible assets that derive their intrinsic value from their material or substance. Examples of real assets include commodities, real estate and land.

Collectibles as alternative investment

Collectibles are considered to be an alternative investment, a group of investment assets that fall into the “other” category. Unlike stocks and bonds, it does not have intrinsic value. It really depends. Yet investing in collectibles is a great way to diversify your portfolio while also owning things you love.