Do you have lazy money?

Not many people would walk by a $20 bill on the sidewalk, but many of us forego far more than that each year by not maximizing the money we already have. You work hard for your money, so make sure it’s working for you. The first step? Identify any “lazy money” in your life—any funds not working to generate returns—and take action to put it to work.

Common myths that hold you back from saving

As a career banker, I find clients often let these similar themes hold them back: 

Myth #1:  I don’t have enough money right now to make a difference. Millions of Americans live paycheck to paycheck with plenty of worries on their plate, making savings—as a concept—feel like a luxury. Many people put off saving until they have “more money,” yet that is likely holding them back. Get started by choosing flexible savings tools that don’t require a fixed commitment.

Myth #2:  I don’t know the best ways to save so I’m putting it off until I know more. Uncertainty is a top reason we don’t take action—on any number of topics in our lives. When it comes to saving, there’s no need to wait for the perfect plan. Instead, take action and make adjustments as you go. You’ll find that once you act, your confidence and knowledge will help you build momentum. Every month and year you wait for the perfect time, you leave money on the table. 

Myth #3:  I want my money available 24/7 when I need it. It’s reasonable to want easy access to your money for day-to-day needs and opportunities. But if fear of the unknown is driving you to keep too much in a non-interest earning account—or worse, in a drawer at home—it’s time to reassess. There are plenty of ways to earn interest while keeping funds accessible. The questions to ask yourself are: How much money do I need accessible 24/7? and What portion can I put in a higher-earning account if it’s available within a few steps?

Easy steps to make your money work for you

Letting your money sit idle could be costing you more than you realize. I recommend focusing on what you may be losing by not taking action and use that as motivation. Start by identifying interest-bearing accounts that are best suited to your situation. Then commit whatever amount of money you have available today then consistently add to it when you can. Over time, you can build it into a significant amount.

Switch from “idle” to “active” savings with these benefits: 

• Earn Interest Automatically. The power of compounding interest ensures every dollar continues multiplying. Even a modest interest rate adds up over time. For example, $5,000 in a high-yield savings account earning 4.00% APY* could grow by about $200—without you lifting a finger or adding more money.
• Keep Your Money Safe. Checking and savings accounts and Certificates of Deposits (CDs) are FDIC-insured so your funds are protected up to $250,000 per depositor, per bank. That’s peace of mind you can count on.
• Stay Flexible. Unlike long-term investments, these accounts give you easy access if you need it, otherwise it’s working away. These are good options for short-term savings goals.  

Wondering about your options? 

Popular Interest-bearing accounts that keep your money available: 

• Interest-Earning Checking Account – Completely liquid. Earn moderate interest on your monthly balance. These accounts often come with perks to help you save in other ways. There may be a monthly fee but do the math. Will the net benefits offset the fee?
• Interest-Earning Savings Account – Completely liquid. Earn modest interest on your monthly balance. Add to the account and move money as needed. 
• High-Yield Savings Account – Great for everyday savings with competitive interest rates far above standard accounts. May have a higher minimum to open. Funds are available anytime.
• Money Market Account – Combines savings with limited check-writing privileges. Often comes with tiered rates so the higher the balance, the more you earn. Still fully liquid. Good for short-term savings goals.

Level up your savings

If you have money you don’t need in the short term, you can usually earn even more with these options:

• Certificates of Deposit (CDs) – Also FDIC insured. Lock in a specific rate based on a set term, often six months to several years. Great for short- and mid-range savings goals like a house, car, etc. 
• Individual Retirement Accounts – Roth and Traditional IRAs are designed to help you set aside money for retirement with some tax perks. You decide how much to contribute and your money will grow over time—either tax-deferred or tax-free—depending on the type of IRA you choose. There are contribution limits and withdrawal rules so it’s best for funds you don’t need for everyday living. Get more specifics
• Financial Advisor Services – For financial planning and investment needs, our Banner Financial Advisors will work with you to develop a custom long-term savings plan that can include a broad range of products and services—some are FDIC insured and some are not. Learn more about this service.

Start saving today—your future self will thank you.

Think of it like planting a seed: the sooner you start, the sooner you see growth. Don’t let your money nap—give it a job and watch it thrive.