How a Waiting Move Can Make You Rich

How a Waiting Move Can Make You Rich

Donald Trump once pointed out that sometimes the best investments are the ones that we don’t make. He was referring to a simple yet effective investment strategy of making a waiting move – sitting back and thinking things through rather than jumping in and taking random action.

Having money to invest does not mean that you have to invest it right away. Instead, when money feels like it is burning a hole in your pocket, take a moment to think about your long-term plans and goals. If you can’t explain how a specific investment decision will help get you there, then make a waiting move.

A Waiting Move When It Comes to Chess
Let’s understand a waiting move with a chess analogy:

In chess, if no clear strategy comes to mind—because you’ve developed your position as well as possible and you can’t see a chink in your opponent’s armor—then it is prudent to make a waiting move…moving a piece that neither helps nor hinders you.

A Waiting Move When It Comes to Investments
Here are some waiting moves to make with your money until you can decide how to put it to better use:
• Put your money in a money market.
• Park your money in short-term bonds and CDs.
• Use your money to pay off credit card debt.

Takeaway
Sometimes the best thing you can do with your money is to bide your time and use your money in a short-term strategy or to pay off debt before committing it to a long-term investment. This will buy you time while earning interest or reducing debt, until you are sure about the financial decision that you want to take.
This is just one investment strategy to make your life easier. To find out more about strategy and the role it plays in financial planning and chess, click here.

If you aren’t already signed up to receive our newest blogs by email, sign up now!