Money is, arguably, one of the most important pieces of life for every person on earth — and pretending that it’s *not* important is just, well, naive.
See, money determines everything you do. It determines how you live. Where you live. What you can do. What you can’t do. How long you have to work.
The freedom you have. 🤟
Do we think you need to be obsessed with money? Absolutely not. 😗😗
But, we also think that it’s pretty dang essential to shed lazy money habits and think strategically about your cash flow and your investment methods. Without working to shed those lazy money habits, you won’t live the best life you can. It’s that simple.
You’ll end up with dead money, you’ll end up with regrets, and you’ll end up not being able to live the life you *could* live.
Here’s the thing 〰️ people tend to hold the same lazy money habits across the board that prevents them from reaching true financial freedom — AKA, #livingtheirbestlives. You want to live your best life, right?!
Let see what you need to know (and do) to beat inflation and get financially free. 👉
What is dead money?
The #1 most common lazy money habit — and one that breaks down into *other* lazy money habits — is a worldwide fascination with dead money. See, dead money is exactly what it sounds like. It’s money that isn’t doing anything. It’s not growing. It is often decaying. It isn’t beating inflation. It is dead‼️
Is it there? Yes. But is it serving any purpose? Not really.
Dead money speaks to cash and investments that aren’t performing, aren’t beating inflation, and aren’t otherwise growing — and dead money is *not* something that you have to just deal with. In fact, dead money is a thing of the past when you know how to avoid it.
7 Lazy Money Habits (That Stem from Dead Money)
Of course, dead money comes from a lot of ingrained beliefs that people have around money. From a belief that money needs to sit in a savings account (or a safe) all the way to the belief that you have to wait things out for them to grow, dead money is very, very common.
However, alive money — or, money that can beat inflation — is a heck of a lot more valuable. 🤓🤓
1. Quite simply, spending more than you make:
First up, the biggest lazy money habit you can have is not having a positive cash flow. If you’re spending more money than you’re making, your money is essentially dead money before it even hits your account.
2. Saving your cash somewhere it’s not growing:
Next, if you’re saving money in a traditional savings account (like people used to think was the only way), it’s dead money. Traditional returns on traditional savings accounts don’t beat inflation, and the pennies in interest you get each year don’t make it worth it for you.
3. Not taking advantage of your options:
If you have a job that’s offering you free money options, like 401(k) employer matches, take advantage of them! Of course, some of you may know here in the Kitti Land, we are not superfans of 401(k), but if your employer is going to match it not that bad right? Free money is the *best* kind of money (right?!) and not taking in that free money is a dead, lazy money habit.
4. Investing in non- and under-performing assets:
Investing is a great thing! 🤗 But investing in assets that aren’t doing you any favors means that you’re missing out on big opportunities and letting your money die. Make sure you’re regularly checking in on your asset returns and performance, and adjusting accordingly to make sure you are consistently beating inflation.
Enter 👉 real estate investment + apartment syndication — AKA, being a legit real estate magnate with a niiiiice ROI.
5. Keeping your cash under your bed:
A fear of banks is a very real thing for a lot of people… but, keeping your cash under your bed (or in a bank itself) isn’t helping you. At all. Instead, you’re keeping your money privy to inflation and… death. Quickly. Always, always keep money in a vehicle that has a bit of a return.
6. Invested in things like life insurance policies with low benefits:
Many people we know were told to take out life insurance policies from financial advisors — and that’s fine! There’s nothing wrong with that. However, what is the payout and benefit? Is it worth what you’ve been paying? Will it beat inflation?
7. Investing in the *right* things:
The most important money habit you can have is to invest in things that allow your money to grow and the worst lazy money habit you can have is not consistently making sure that you have, truly, invested in *those* things. Poorly invested money (like money you invest in highly volatile stocks or in declining assets) is dead in itself and you deserve better than that. 😎😎
How to Shed 7 Lazy Money Habits
When it comes to shedding lazy money habits, the most important thing is to reframe your mindset around them in the first place. See, most so-called lazy money habits most of us have come from a lot of things — from our parents, from society as a whole, from what your neighbor Ted 😜 told you was the right way.
However, what used to be the “right” way to do things is likely not that way anymore, and the method your financial advisor recommended you to do might not the right thing, either. Now, what is the right thing to do, you ask?
It’s to invest your money in ways that hedge against inflation.
It’s to get to the bottom of what you really want in life. It’s to push against the status quo in ways that make you rich — even if it’s not what Ted thought you should do. Most people really, really like seeing the number in their bank accounts grow. They like watching the dollar amount rise and the number get bigger and bigger — but that number will not get someone to financial independence. It just won’t.
Let’s take an interest rate of 1% (which, like, doesn’t exist right now, but we digress), okay? Even at that *very generous* rate, the money in the bank continues to lose value. Why? Because currently, the inflation rate in the United States is balancing between 4 and 6%, which is a heck of a lot higher than 1%. 🤯🤯
If this current inflation rate continues, that money you have sitting in a 1% interest bank account will reduce in value by half in just 13 years.
You. Deserve. Better. Than. That. You deserve better than dead money. You deserve actual wealth and actual financial freedom, and the only way you can get there is beating that inflation rate and making your money work for you. There are a few ways to do this, all of them great. But our favorite method? Apartment syndications, all the way. ✌️