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THE LAZY MONEY EPIDEMIC: Exploring Better Ways to Put Your Money to Work
THE “LAZY MONEY” EPIDEMIC: Exploring Better Ways to Put Your Money to Work
Stop treating your bank like a temple. It isn’t. It’s a warehouse, and right now, you are paying rent to store your own cash. You don’t even know your paying it to them.
We need to have a serious conversation about the cash sitting in your checking account and savings right now. You probably think it’s “safe.” You probably think you’re being responsible. You are wrong.
If your money is sitting in a traditional bank account, it isn’t just sleeping; it is actively shrinking. It is “Lazy Money,” and it is costing you your freedom and the ability to fight inflation. If you’ve ever thought, things are so expensive nowadays and I need to fight it somehow. This is the somehow.
THE GREAT TRADE-OFF: WHY “FREE” CHECKING ISN’T FREE
Do you remember the “good old days” of the 90s and early 2000s when banks actually paid 5% interest? Those days are dead, and we killed them.
We demanded a trade-off. We told the banks, “We hate monthly fees. We want free mobile apps. We want free bill pay.”
The banks smiled and said, “Deal.” Now if you were an adult by then, you think this is how it should be. You’re wrong.
To give you those free services, they stopped paying you interest, and sure when interest rates were .25% it didn’t matter, but now that the Fed rate is 3.5% to 3.75% it matters more.
They took the yield that belonged to you and used it to build their software. You aren’t the customer anymore; you are the product.
THE MATH OF DECAY
Here is the brutal reality: If your savings account pays you the industry average of 0.01%, and inflation is running at 3.00%, you aren’t “saving.” You are losing 2.99% of your purchasing power every single year.
That is not safety. That is guaranteed loss. Your money is rotting on the vine because you are too comfortable to move it.
STOP BEING A VICTIM (BE A HUNTER)
The bank is never going to call you and say, “Hey, you have too much cash sitting here earning nothing. Let me show you how to make more money.” The bank won’t do it for you.
You must stop being a “Passive Saver” and become an “Active hunter” of yield. You have to audit your own life.
THE NEW RULE: 1 + 2 + GROWTH
How do you fix it? You fire your Lazy Money and you find a new employee. You give it a job. Here is the framework to stop the bleeding:
Tier 1 (The Checking): Keep 1 Month of expenses here for day-to-day bills. That’s it.
Tier 2 (The Safety Net): Move 2 Months of expenses to a Money Market account. This is your reserve. It is accessible, but it earns real interest.
Tier 3 (The Growth): Everything else? That is Excess. It is “homeless” money. It needs to be invested in a conservative or moderate mix to actually grow.
If you leave that excess money in Tier 1, you earn nothing. If you move it to Tier 3, it can buy your next car, fund your vacation, or build your retirement.
Wake up your money. Or lose it.
Verus Financial is an SEC registered investment adviser. Information presented is for educational purposes only intended for a general audience. The information does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Verus has reasonable belief that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Verus has reasonable belief that the content as a whole will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Verus has presented information in a fair and balanced manner. Verus does not give tax, legal or accounting advice, consult a professional tax or legal representative if needed. The opinions expressed herein are those of the firm and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass.
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