No matter where I go, people always want to know about investing…When is the best time to begin an investment program? Will the stock market go up or down? And what about real estate – is it still the solid investment it used to be?

Wise investors know that the secret to effective investing is to integrate their investing plans into a sound financial strategy. Here’s a sequential six-step process that works for every income level:

Step One: Eliminate all high-interest or short-term debt. Before you start thinking about buying stocks or CDs, “invest” by paying off debt. Paying off credit cards is a risk free investment and can pay high returns.

Step Two: Keep one month’s living expenses in an interest-bearing checking account. Once you have repaid all high interest debt, start funneling your extra cash into an interest-bearing checking account to handle minor emergencies.

Step Three: Keep three to six months’ living expenses in a money-market fund or savings account. With a healthy money-market fund, you can “borrow” from yourself instead of the bank if you need extra funds. Remember to replace the money you use, and resist the temptation to use the fund for undisciplined spending.

Step Four: Save for major purchases in a bank CD, a government-security mutual fund, or treasury bill. Certificates of deposit, government funds, and T-bills are conservative, low-risk investments that make ideal savings vehicles for major purchases.

Step Five: Invest to meet long-term goals. Investing for long-term goals calls for a diversified investment portfolio. Money market funds, mutual funds, real estate, bonds, and international equities may all be part of the picture.

Step Six: Speculate. Speculation carries a significant amount of risk. Speculation demands time and willingness to research and become actively involved in the investments themselves. Speculate only if and when you have effectively completed steps one through five and you have a temperament that allows you to take risks.

Before beginning any investment program, think about what you want to accomplish. The process may seem slow, but stick with your strategy.


Ronald Blue & Co., LLC is a leading financial, estate, and investment counsel firm serving more than 5,000 clients through a network of 14 offices nationwide. Founded in Atlanta in 1979, the firm manages approximately $2 billion in assets and employs a staff of more than 175 people. Ronald Blue & Co.’s services, based on biblical principles of financial management, include comprehensive, fee-only financial and estate planning, investment analysis and management, strategies for charitable giving as well as complete tax preparation and business services for individuals and organizations. For more information on how RB&Co. services can benefit you , contact the local office in Atlanta at 770-644-0500.