Money lessons I learned this summer
This summer I’ve been spending more time in the water. With our hot, humid weather a dip in the ocean or the lake has been a welcome respite. I’ve always loved water sports and get a kick out of floating around with a cold beverage in hand – and this year is no exception. Plus, riding waves in the Atlantic Ocean or kayaking in mountain lakes are great social distancing activities!
Since my brain is always tuned in to metaphors, analogies and stories that might help us think about our money and our financial wellness differently, it’s no surprise that I have come up with a short list of water-related perspectives that I’ve been pondering…
1.River or Pond?
One of my mentors shared they’ve worked with many people who view money like a river. River water is constantly moving, it’s not steady or stable. It might go past you but there’s always more coming behind it. When I think of the white-water rapids in fast moving lakes, I know that water can come in big! And it can be an adrenaline rush.
Sound like your money mindset?
Or maybe you view money like a pond? It’s a pool without wide fluctuations in water levels. And if you pull water out of the pond, there’s not necessarily a rush of water coming behind it to fill in the gap. Ponds are often calm, disruptions are likely very apparent and can have significant impacts. Is this how you view your savings, investments or financial plan?
2.How do you treat your cash Reservoir?
A reservoir is the place where water is collected and stored for use. Reservoirs can be natural or artificially made. For many communities, they’re the source of water for drinking or irrigation. This makes it especially important that we care for our reservoirs keeping the water clean and safe.
When you think about your cash reservoir, the money you use for everyday functions, where do you keep it? How do you treat it? If you shove dollar bills into your wallet sideways or scoff at your bank accounts, you may want to stop that…. How about your cash cushion emergency fund? Is that kept safe in a separate account, clearly marked and maintained for its purpose?
3.You have to pay attention
In the ocean, if you turn your back to the waves, it’s likely you’ll get knocked over. Or like me, you might even find yourself whirled around underwater (think washing machine cycle) and washed up on the shore with your hair in your face…. You have to pay attention to your surroundings.
Another example is the classic summer delight of swinging from a giant river rope swing and plunging into cool water. Totally fun…but you ALWAYS have to check the water for rocks, ensure the spot you’ll drop in is deep and wide, and that the tree and rope knots are in good condition. You MUST pay attention and be proactive to check your surroundings.
How do you pay attention to your finances? Are you taking risks without proper analysis and advance thinking of ‘what-if’ scenarios? Have you ever ignored your money and found yourself washed up on the analogous beach with your hair in your face?
Who knew water could spark so much to think about related to our financial wellness??
Regardless of whether it’s these prompts or something else that resonates more with you, I encourage you to genuinely get to know your money mindset. By taking those moments to recognize how we think and feel about money, we position ourselves to make more informed decisions and achieve our financial goals – and who doesn’t want that??