$100 In The Bank?

Don’t Save $100 A Month In A Bank

Most people think that money work is all about math.  The assumption is that only those that are really good at math are employed in the investment industry.   So much is written about quants and algorithms now.   The age old picture of a man sitting behind a cherry desk with pencil and paper working out calculations in accounting has lingered with us for over a century.

However, if you take the tests to become licensed to work in the stock market, you will soon learn that the few math equations, with generally, basic mental effort, aren’t intimidating at all and surprisingly attainable.  It turns out it isn’t much of a math industry after all.

And ,what higher level math the innovative firms worked to develop over time are now hidden inside sophisticated computers.  The future of AI will continue to shape this.  Yet, the human, at the desk, will not need to feel confident in math.  The highest valued confidence is actually in emotion.   

Let’s dig in today to a few concepts in emotion so you don’t use your small $100 a month without first understanding a bit about how emotional money truly is.

Think about the first time a new store came to town and how exciting that was.  Think about the novelty of new things you hadn’t seen before or a new way of shopping for something you always buy.  Think about the interest and the conversation.  Think about the buzz of energy when there is something new.   

Then, think about when the newness wears off and people get bored of going there or maybe enough people had negative experiences to dim the shine over time.  Think about when the products are all the same each time because no new investment of product has been invested in while the business continues to balance the payments of operating the overhead.   

This was the box store business cycle that was developed in the early 2000s.

Think about the businesses that are tried and true for you.  Or, the ones where you just love the owner so you always go there to talk with him or her.   Think about the solid businesses that are always stocked and don’t take much time to get what you need.  Think about the businesses that keep their prices low for the necessities and think of the ones that kept increasing prices so quickly, you just got frustrated and looked for other ways to find the same thing at a cheaper price.

Why do we spend money?

What motivates us to purchase something after working so many hours in a job we don’t really like that much anymore….

What is it about money that always makes us so upset month after month.

The check hits our account and within a week is almost gone after paying all the bills.  We sit and dream of being rich so we don’t have to feel stressed.  We long for the day where we have saved up enough money to go on vacation somewhere beautiful.   We want to re-do our kitchen or buy new shelves for the garage.  We want to give our kids the best of everything and keep them well-fed and playing ball out in the neighborhood where safety and peace isn’t a question.

Money = Safety.   

Money means one is worthy.  Ones work is valued.  The pay-off says not just good job but you are good.   We intuitively place value on “the good.”

The young will sit around and question themselves.   Why am I so poor?  What is wrong with me?  Why can I not be successful?   What work do I need to do to get the money I need to survive?   How can I raise myself up out of just barely surviving?

I want to find my dream job and live in my dream house and drive my dream car and go on dream vacations and find my dream soulmate and have a happy life.   

Money is emotional.

The difference between those that build something that makes money and those that try and find employment to bring in money is the builders see money as a tool not as an emotional extension of worth.

It truly is a tool.  And yet, it does say something about each person’s unique gifts and path.  It is a good use of time to break down the reasons why you like to spend money on certain things to help you continue to figure out your purpose and fulfillment on your life journey.  Do not just say “Money is the root of all evil” and then dismiss the thought process needed to understand how to use it as a tool in your own life.

All things in balance.

So, let’s take a look at the basics that most of the U.S. are spending their money on now and the overall emotion connected to it.

The funny thing is that if you were to strip away all the non-essentials in streaming or membership service add-ons in a tough economy, the one streaming service that seems to keep stable is Spotify.   

Why?  Because money is emotional and music is the medicine.   

Now, how is it in a world where Amazon and Apple already have subscription domination and their own music platforms, Spotify is still increasing at a good rate?   The stock price is too high for our little $100 but if the market or the stock crashed, would it be an opportunity to seize on?

Those days where the emotional stress of money is too high to bear, keep a little list of the companies that seem to really know how to build.   Then, you can optimize on the down markets knowing that the companies built well will bounce back or even dominate later.   

So, you have a company you know you love and spend money with but the stock is over $100.  That will be on your list for when it dips.  Set yourself a notification and keep your ear out for other similar music streaming that seem to be gaining steam in users and excitement to put your $100 in now.   

Take a look back at my first post How To Use $100 and please subscribe, share, and send me survey feedback!

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