Is it possible to make your money work hard for you?

Life is a game that consists of a number of sub-games: health, wealth, spirituality, self-development, etc., which in turn have their own number of periodical mini-games.

Alternatively, life can be seen as a delicate act of juggling multicoloured balls, and each ball represents an aspect of your life: family, health, mental well being, money, etc. Now picture yourself juggling these items and suppose you drop the money ball. You soon discover, fortunately, that the money ball is made of Jugglingrubber, it bounces right back and soon you are on your way to juggling again. But suppose you drop any of the other items – family, health, mental well being – and you discover they are made of glass; once shattered, they can never be put together entirely again. There will always be pieces missing. So make sure you take care of those first.

Now, ways to get that money rubber ball to bounce back.

I came across an article on thestar.com called “Don’t get peanuts on your savings” by Ellen Roseman. In it, the author goes on to explain large financial institutions, such as CIBC, RBC, TD, Scotiabank, BMO, etc., are providing their customers with very low “high-savings” interest rates currently sitting anywhere in the range of 0.5% to 2.2% per year. It is worrisome to see these rates of return especially when you consider that the average rate of inflation in Canada is above 2.0% per year. Yikes! In other words, if your money is sitting in a bank account or basic savings account, you are effectively losing money unless you are invested in something that provides a higher return than inflation and taxes combined!

The simple rule of thumb here is that banks do what’s good for banks first; period! That’s why they have the nicest, tallest buildings in every city. The responsibility for your financial well being, just like everything else, relies solely on your shoulders. You have to find ways to make your earned income work hard for you. This is what makes people wealthy – their money earns more money through sound investment.

Throughout this blog I have shared thoughts on wealth management. Do some research, and execute.

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