What’s lazy money? It’s money in your life, that’s not performing well for you or is just being wasted through inefficient systems or structures. Do you have money that could be working for you?
MONEY IN BANK ACCOUNTS
Do you have money sitting in bank accounts or a cash equivalent in a brokerage account earning you 0.5% or something close to that rate? Chances are you put up with low returns because you want to keep it protected from investment loss and have access to it. Have you asked your financial professional about other options that give you what you need plus a better rate of return?
When was the last time you reviewed your portfolio and the value of your assets? You might have some equity sitting in there, which could be put to better use by investing. Reviewing this should be standard practice for you every 6-12 months.
INEFFICIENT LOAN STRUCTURES
Do you know if you should pay principal and interest or interest-only for your situation? Should you fix or keep your loan variable? Are you achieving the lowest interest rate possible while maintaining the flexibility you need? Review your loan structures and develop a strategy that keeps your money working for you rather than for someone else.
UNCLAIMED TAX DEDUCTIONS
Many people look forward to receiving their yearly tax refund as a forced savings plan. Sounds good, doesn’t it? But this is classic inefficient, lazy money. Ask yourself, while your money is sitting with the IRS waiting for you to claim it back once a year, how much interest could you be earning from it?
Are you getting the best rate for your home mortgage, your insurances, your health coverage, your home utilities, etc.? If you look around your home and negotiate costs on your expenses that you assume are priced fairly, you just might find a pot of lazy money. Don’t put up with lazy money in your life. This line of thinking is a sure-fire way to staying broke, whereas if you actively get your money working for you, then financial freedom suddenly becomes closer and closer. Let’s get that lazy money back to work.
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Adapted From: https://www.toddpolke.com/lazy-money/