Today, we are going to break down some of the most common portfolio mistakes people make on the path to financial independence.

Of course, this is always for entertainment purposes only and isn't investing advice.

Hello, hello, hello, and welcome to the Bigger Pockets Money podcast.

My name is Mindy Jensen.

And with me as always, Ismay has never made a mistake in his portfolio, co-host Scott Trench.

Thanks, Mindy. I'm going to decline to respond to that intro here. We all make the mistakes that our portfolio, myself included. But Mindy and I have observed a few newer portfolio mistakes over the last few years that we hope will be helpful to you as

you think about constructing your portfolio and think about how you're finishing out your fire

journey. Okay, Scott, the first mistake that we see, especially with a lot of our Finance Friday

guess, is hoarding cash without a goal for that cash, without any reason to have that cash on hand.

We have spoken with people like Farnoosh Torabi, who is a content creator in the

financial independence space, who is also self-employed.

And for her, I believe she said she holds 18 months of spending in liquid or cash accounts

because that's what makes her comfortable. She's thought about it. She has a reason and she's doing it

on purpose. We talk to a lot of people. I'll go through their financial statement. I'm like,

why do you have $250,000 in cash? Oh, I'm going to, I'm going to do something with that. I'm thinking about buying a house in a few years. Well, $250,000 is a lot of money to just be sitting around without an actual purpose. So don't hoard cash unless you have a reason for it. You should absolutely have an emergency fund,

which should be in cash. You should absolutely have enough cash that you're comfortable.

But you should also have a reason for why that number makes you comfortable.

I think that the mistake is in lacking a coherent philosophy or coherent, you know, investment approach that

interweaves all of these things.

And so you can have a lot of cash.

Warren Buffett has a tremendous amount of cash, right?

There's a reason behind that.

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