It just sits there – it’s like it’s looking at me saying “Take me out, play with me, make it exciting! Do something that you’ve never done before. Invest me!
A lot of you were probably thinking about something a little bit different than what I’m talking about here. Money! I’m talking about your money that just sits in the bank, not even accumulating dust – Static Money.
Even in high interest accounts you could maybe get 3% as a bonus for the first 4 – 6 months and then it’s likely to drop back to anywhere between 1% and 2.75% if you keep depositing over a certain amount every month. Don’t get me wrong if you have your money in a so called “high” interest account at least you’ve taken that step. And that is better than 87% of Australians that aren’t even making that choice.
The first step to getting in front is to work hard and keep earning and learning to get ahead. The second, I think is to get your “static money” as I like to call it (as it just sits there, looking at you like the wide eyed blank face emoji every time you open your balance), working harder than you do earning it.
Don’t get me wrong I’m not rolling around in bed with $100 notes caressing my body like a fine red Egyptian silk sheets while being photographed for the Forbes rich list. I’m far from that, but I find how you can have your money working for you instead of you working for the money fascinating and dare I say, sexy.
There are so many different options out there and some are right for different people in different circumstances. Income, age, agenda, personal status, knowledge and willingness to take risk all come into play when taking the first step. It would be foolish to just jump into an freezing Alaskan stream without getting information on how to get out alive – so don’t do the same with your money. Ask questions. What is the temperature of the water? How long can the human body last in there? etc. The same goes for making any investment decision, How much do I need to invest in that area? What are my exit strategies? The main question is, can I still fulfill Maslow’s hierarchy of needs if it goes south.
It all starts with a goal, whether it’s a curtain % a year or for the future, you must be clear. Also have stages or “mini goals”. I feel the path to your goal is like getting in an elevator and knowing that you need to get to the 10th floor but to do that you have to stop at each floor to gather the key to open the next level.The main goal is “to get to the 10th floor but there are steps or “keys” that you need to collect on the way to progress toward your goal.
Talk with people that are in the know and review your current financial position. Do you have money that is as lazy as a sloth that has already eaten? Can you go without having that money? Are there any forcible circumstances that you will need to dip into your treasure chest? Do you have “Emergency” funds that can be drawn on if needed? You don’t want to there sweating like a gypsy with a mortgage when the next bill comes in or the car feels it’s time to retire. This will give you an idea what you have left to put to work.
There are so many companies out there that can help you get your money working for you.
If you are an ambitious Gen –Y there are people like Wealth Enhancers who are dedicated to giving financial advice in a different way. They will coach you through the steps needed to have your money jumping fences for you. They have built a community not to just support you on the journey but most of all keep you on track and accountable towards your goals.
Make the commitment not just to yourself but to the better version of you to see out your goals. Keep the reasons you are kicking your static money along fresh in your mind. And make an educated decision. Celebrate the mini goals and small wins. Be as patient as the Dalai Lama. Most of the time things take longer than expected but this gives you time to research more options and have a greater view of the yellow brick road you are traveling along.
For me it’s all about being the very best version of yourself. Giving back to people that are giving their life a red hot go and being able to genuinely help those less fortunate. That’s my long term goal and just one of the ways I can do that is by giving that static money a good kick up the proverbial donkey and make it start working harder than I do.
Remember you don’t want to be like that kid that fell out of the tree…… he just wasn’t in it.