5 Savvy money moves to make when cash is flowing

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Your bank account runneth over, now what?

According to The U. S. Social Security Administration, about three million people, a little more than 2 percent of the population, have the wonderful dilemma of earning $200,000, or more, annually.

With the onslaught of young, Black entrepreneurs and Black women killing the advanced degree game, many of the new members of the upper-middle class are the first to experience such financial stability in their families and scrambling to figure out how to maximize their income.

READ MORE: 6 tips about managing your money that will set your 2020 on fire

If you’re lucky enough to be in this financial category the question isn’t whether you should invest, but rather where.

There isn’t one blueprint for investing. Your strategy depends on several variables,  including the economic climate, tolerance for risk and overall resources. Still, there are a few tried and true staple moves to consider.

Here are five money moves to keep in mind when you’re ready to invest on the next level.

Upgrade Your Savings Game. Stashing a few months of living expenses and matching company dollars in a retirement account is the standard savings strategy, but if you earn more your savings needs to reflect it. Opt for at least one year of living expenses in your savings account, and maximize your annual retirement contributions. Financial institutions such as City National Bank, offer retirement and estate planning services to help you create the correct budget to achieve these goals.

Revamp Your Existing Portfolio. Book an appointment with a financial planner and lay your cards on the table. The goal is to reassess your tolerance for risk. Are you ready to commit to budgeting more money to fatten up your portfolio monthly? Perhaps you want to invest in more specific stocks. Or maybe you want to consider a more aggressive mutual fund mix. Find a financial advisor that you feel comfortable working with and who is open to creating a strategy that meets your upgraded investment needs.

Secure Income Generating Properties. A beautiful house or well-appointed condo are excellent assets and may allow a few tax write-offs, but are ultimately a bill. Investing in real estate has long been a way to build financial security, and there are many inroads. Some investors opt to buy additional single-family units, while others look into small multi-unit options for a longer rent roll or commercial spaces (think owning a strip mall) If becoming a landlord isn’t in the cards, Real Estate Investment Trusts (REITS) give investors the option to drop dollars into a mutual fund that owns properties and collect dividends.

Invest in Small Business. Cash flow is a notable problem for most entrepreneurs. The lack of funds often prevents founders from re-upping inventory, buying needed supplies and upgrading tools and appliances needed to push an entity to the next level. Find promising businesses with a great team, proven model and solid plan and lend your dollars.

Think About What’s Next. Is starting a new business in your future? What about decorating your home with appreciating artwork? Ever want to take a year to travel? Whether your next big goal is professional or personal, you’ll likely need cash to fund it. Creating a savings account specifically for that objective — or even earmarked “next big thing” — is a great way to give you the mental and financial freedom to dream generously and move securely.

S. Tia Brown is a journalist and licensed therapist. Follow her on IG @tiabrowntalks.