Who’s got all the cash?

I was reading an article about money this week…funny that.?

I thought you might be interested in some of the things that I saw. It was about the amount of money in different types of bank accounts at the end of?December 2021.?

• Transaction accounts: $52.3billion
• Term Deposits: $83.4billion
• Savings Accounts: $79.9billion

The transaction accounts have?increased?in balance by around $25 billion since the start of the pandemic. Transaction accounts are everyday accounts for all of us.

Term deposits have?dropped?by around $20 billion. This is where people lock up their savings for a certain term (i.e. 6 months). Maybe they’ve become a bit unfashionable with the low interest rates and perhaps people have chosen not to roll them into a new term deposit when they have matured/become accessible.

Savings accounts have?increased?by around $20 billion since the start of the pandemic. Savings accounts can usually be accessed at any time.

This gets you thinking about what people are thinking?

Perhaps people don’t want their money tied up in term deposits because they want the certainty that they can access it. This makes sense because we’ve been living in so much uncertainty recently.

People may see that the term deposit rates aren’t attractive enough to have cash locked up.?

Regardless of what people are thinking about, there is a lot of cash sitting in different bank accounts.

Who has all of this cash and what are they planning on doing with it?

That is pretty hard to know but you’d have to think that someone is going to be chasing it.

Whether that be an influencer trying to push the latest activewear or an investment fund manager offering the next great 10% guaranteed property deal.

It will be very interesting to see what this looks like in a year's time. Remember that this cash is effectively becoming worth less too, as inflation is eroding the ‘real’ value of it (i.e. the same level of cash can buy less as time goes by).

For some of you who like to hustle, you have to understand that people are sitting on large amounts of cash that they can access (it’s not locked up in stock markets or term deposits, for instance).

That means you can access it. Mow their lawns, look after their kids, help around the house etc. If you have value to add to a household, it might be worth asking if they’ll swap some of this cash rotting in a bank account for what you can do for them.

Of course, we know the older generations are collecting a lot of cash and assets. Eventually, this is going to be passed down and a lot of it is already changing hands as the bank of Mum & Dad come to the party for first home buyers.?

Month end?- March 31 is an accountants orgasm. It's when the financial year end climaxes and they get to start on a whole new experience of the next financial year.

For you it may not feel as explosive, but the end of the month should remind you that it is time to do your month-end process and tally up your assets - liabilities and work out where your money will be allocated next month.

This is an important step to remind you to stay focussed on your finances and review your progress. Don't skip this step - it is very important.

Thanks to everyone who tuned into the daily 30 in 30 podcasts this month. They were a lot of fun and I hope you took some inspiration from them.

Shout out to Matt and the team at Brew Co?in The Mount?who have been in touch to help support Keep The Change by covering the cost of this e-mail platform that sends the weekly lesson out. How good is that! There's a lesson here for youngsters keen to be influencers. It might take you 99 episodes, posts, tik toks for money to exchange hands. Get it done. When you're in The Mount, grab a bit of food or a refreshment from Brew Co.

Crush the weekend,

Luke

P.s. You are one of?5,469?recipients.?Is there someone you could forward this to?

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Did you know: Sharesies have gone past 500,000 customers. That's a BIG list of clients by NZ standards. Air NZ is seeking $1.2billion dollars (I think they'll get it) from shareholders.

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The 30 in 30 were:

30 In 30 | 30. YOU Are Powerful As Fark So Who Stole Your Power?

30 In 30 | 29. What Did I Miss? 35 High Level, Key Points

30 In 30 | 28. Your Questions From These Lessons

30 In 30 | 27. Visibility Is A Fake Metric For Success

30 In 30 | 26. My Step Dad Passes Away

30 In 30 | 25. Why I Rent (Listen With Open Mind)

30 In 30 | 24. The Top Tax Bracket (39% Tax )

30 In 30 | 23. The 'Buying Fancy Sh!t' Trap

30 In 30 | 22. Stag Do & Friends Share Groups

30 In 30 | 21. Spending To Get Time Back

30 In 30 | 20. Giving | Why I Think Giving Is Important

30 In 30 | 19. Commit & Then Figure It Out

30 In 30 | 18. A New Money Mindset

30 In 30 | 17. Building An Emergency Fund

30 In 30 | 16. Stacking 6 Figures ($100k) | Why I Did This

30 In 30 | 15. Saving 40% Of Your Income (WTF, How?)

30 In 30 | 14. Buying A Flash Car (A Waste Of Money?)

30 In 30 | 13. Investing In Yourself (Why?)

30 In 30 | 12. Being Broke & Living Rent Free House Sitting

30 In 30 | 11. Quitting My Job

30 In 30 | 10. Breakups, Bad Choices, Death (Warning: Heavy Content)

30 In 30 | 9. Buying Shares (The A2 Milk Story)

30 In 30 | 8. Trying Travel & Trying To Remember Vegas

30 In 30 | 7. Selling A House (WORST financial decision?)

30 In 30 | 6. Pissing Away My 20's

30 In 30 | 5. The Credit Card Spiral

30 In 30 | 4. Buying A House

30 In 30 | 3. Buying Beds & Lazy Boys On Consumer Finance

30 In 30 | 2. Wasting Money As A Teenager

30 In 30 | 1. Growing Up

Available on every podcast platform. I suggest you start at Day 1 and go through the order that way.

Cheers,

Luke