Monday Morning Money Moment: May 29, 2017
Out of Sight, Out of Mind: Long-Term Savings
Welcome to the final weekend of May friends. Where did this month go? This week’s “Monday Morning Money Moment” is all about perception. For the majority of people, perception is the reality. The same is true with money. A lot of people who don’t look rich, actually are. Others wear all their money around their neck. Today I am going to talk specifically about what it will take for you to be rich. People with money all have one thing in common; they have money that they don’t touch. This is extremely important especially when it comes to people who have self-control problems.
There is a real problem for many of us when it comes to how easily accessible our money is. I remember when I was a kid my dad used to pick us up at school every Friday around 3 PM and we would go to the bank. We would be in the bank for literally 2 hours while my dad and every other person in Brampton withdrew their money for the weekend. This was back before ATM’s were widely available. If you didn’t get to that bank before 5 PM on Friday you would have no money until Monday morning. It was terribly inconvenient back in those days. What it was good for was discipline. You could only spend what you took out. After hours you weren’t dropping hundreds on bottles at Belfort when you were already polluted. It was almost like a second chance, no-regret, transaction protection.
These days we can access almost everything we have from our phone. Everything from our Tax-Free Savings Account, Line’s of Credit, Credit Card Cash Withdrawals, even Home Equity is just a touch away. While it is super convenient it doesn’t make for a good situation when it comes to saving money. I have client’s that transfer $100 every two weeks into their TFSA only to quickly transfer it back into their chequing account. Kind of defeats the purpose of saving right?
I think it is essential that everyone has some money that they have a tough time accessing. This is especially true for all the Shop-a-Holic’s, Friday Night Bar Stars, Impulse Big Ticket Item Buyers, Make it Rain Aficionados and basically anyone who doesn’t understand the full consequences of their spending. Your parents used to put it under a mattress. Some buried it in the backyard. I don’t recommend doing that but you definitely have to have some money tucked away. Once it’s gone, it doesn’t exist to you. That they way it has to be, believe me. Have the perception that this money is not yours anymore, it belongs to “Future You.”
Thanks for reading friends and tune in tomorrow for the “Tuesday Tip of the Week” where I will show you several ways you can stow away money that you won’t blow on a drunken Casino trip. Have a Great day folks!
“If you would be wealthy, think of saving as well as getting.” —Benjamin Franklin
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Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at www.budgetboss.ca.