Money terms come and go. Some, like the word “banknote” have been around for generations, but the meaning has changed as society evolved. Other terms, like moolah, say more about recent pop culture than how money actually works.
Before 2008, the phrase “slow money” referred to wealth that is created over time, not money that is won, hustled, or inherited. Historically, “slow” or “old” money has been associated with character traits like patience, determination, and sacrifice.
If you’re like most people, both slow and fast money sound pretty good. There’s no shortage of information out there on how to earn a “quick buck”, so here at the CESI Solutions, we focus on how to earn and grow wealth that has staying power. In other words, we’re all about slow money, and what it takes to attain it.
Money that is earned over a long period of time isn’t more valuable because of its amount; it’s more valuable because the person who owns it appreciates it differently. It may seem like if you win the lottery today you’ll be just as happy with that sum as if you had worked decades for it, but that’s just not the case.
Another reason any amount of slow money is more valuable than a quick buck is because of its owners’ character. Like it or not, but a huge inheritance won’t teach you good financial habits quite like working day in and day out toward financial freedom can. So the same amount in the hands of a lucky lotto winner has less potential than a self-made investor.
So how can you get started acquiring slow money and the smarts that tend to come with it? The answer depends on where you are financially right now.
If you’re barely making ends meet each month, the first step is not to dabble in the stock market. The first step is to establish a budget, climb out of debt, and get to a point where you can start regularly stashing away a few bucks that can grow while you’re not paying attention to them. If this sounds discouraging, it’s only because it’s not new information. But consider this: When you tackle your high-interest debt, you’re lowering the amount you owe each month, usually by a much better percentage than a stock that has a good “rate of return”. In other words, when you pay off debt, you’re investing in your monthly take-home pay by increasing it.
Once your monthly bills are paid consistently and comfortably, credit cards are a tool (not a need), and you have a substantial emergency fund established, then it’s time to begin investing in long-term assets. You’ll want to start with retirement investing, and work toward building your portfolio once your 401(k) is fully funded, and your Roth IRA account is fully maxed out.
Another smart way to invest is by boosting your own earning potential. Consider a trade certification, professional accreditation or advanced degree, to be sure you are always ready for the opportunities that come your way at work. Granted, you won’t be doubling your income overnight, but once you’ve achieved that certification it cannot be taken away, unlike other assets that fluctuate with the markets.
Slow money isn’t accrued with dramatic decisions and flashy purchases. It’s the combined daily sacrifices that, done over time, can position you for great wealth in the future.
To learn more about your specific financial needs, let the professionals at CESI help by giving us a call, today!
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Consumer Education Services, Inc. (CESI) is a non-profit service provider of comprehensive personal financial education and solutions for all life stages and for all of life’s milestones. Our goal is enhanced economic security for everyone we serve.
CESI is NOT A LOAN COMPANY