|A delicious Laksa cooked up by|
our family friend Gail
The phrase "old money" generally conjures up thoughts and images of generationally wealthy folk eschewing people with new money as 'naff' and undesirable. Sometimes it talks of money that is inherited rather than earned coupled with powerfully, formidable, hyphenated surnames....the vieux riche.
However, that is NOT what I want to chat about with you today. The old money I am referring to is OUR old money. How old is our money? How long has it been untouched for? I referred to this concept here and labeled it as self-insurance savings.
|I spy pie in the fridge!|
The older our money is, the more self reliant we can feel. Let's be realistic however, not touching our money and letting it age can be a daunting task - it can feel nearly impossible sometimes. The end result is to have at least six months worth of expenses socked away so that in effect we are spending money that is already six months old (or more).
|Our lovely oil lamps out on the deck lounge room.|
It can take significant amounts of time to build up some old money - five years is reasonable. Put a little away without fail every time we get paid...even if it is a tiny bit. It will add up over time.
The greatest nemesis for the accumulation of old money is its ease of accessibility. Have an account that requires a double sign or a notice-of-withdrawal policy. Either or both of these things will robustly keep our old money from the sweaty grasping fingers of convenience.
If we have to manually allocate money to our old money account then that habit will probably dwindle or lapse....so, automate it. Talking to our pay office to get a small amount sent directly from our pay packet into the old money account before it hits our normal bank account will ensure old money continues to grow and age. The less attention we give it, the more likelihood there is of our old money not to be touched and to quietly grow.
Give Ourselves A Pay Cut
I had to create a faux demotion to trick myself into putting away money to create my old money account. I pretended that I got a small pay cut, reorganised my budget accordingly (much pencil chewing occurred!) and then automated that amount to flow into a separate interest bearing account. It can be very surprising how small amounts can grow.
Tithe Other Windfalls
Take 10% of an unexpected or non-standard windfall of money. Take 10% of that profit we made selling that car, take 10% of that birthday money, take 10% of that tax return, take 10% of any unexpected cash and pop it straight into the old money account - that still leaves us 90% do with as we see fit.
|The banoffee pie has been well and truly tucked into|
Old money can be a great blessing, a measure of personal integrity, a self-created insurance policy, a tangible indicator of self discipline, a calm generator and an insomnia blaster.
Take care folks and stay nice.
|Defrosting the $50 freezer.|
It is still cheaper to do this every
three months than fork out for
a new one.