The Peace Account

We’re often told to save money for retirement, but what if we don’t plan on retiring?  Not because we don’t think we’ll be able to, but because we truly love what we do and it isn’t too stressful.  Or it’s possible that for you, retirement doesn’t look like a very solid prospect.

What about just putting money away for savings?  Too easy to empty on a rainy day.

So WHERE should we put our money?

Dr. Mehmet Oz said in the October 2008 issue of SUCCESS Magazine that he has always paid himself 10% of his paycheck, all the way back to when he was an intern earning an income of only $29,000 per year.  He didn’t save it for retirement, heck, most people have enough trouble planning for tomorrow yet alone 40 or more years from now.

And he didn’t just save it, either.

He set it aside for ‘peace of mind.’

The problem with setting money aside in savings for emergencies

Like our ancestors, our bodies and minds are always looking around for problems, for danger.  We innately know how to protect ourselves, and our body does this on its own pretty well.

So when we have money set aside for emergencies, we tend to set up an alerting system, an IFTTT alert, if you will.  We tell our brains to look out for emergencies, to avoid danger, and to respond when we see something that requires our emergency fund.  In doing so, we are basically working our brain double-time, and I’m sure it feels a bit disrespected.

Working our brains double-time on a problem it knows it can already solve is wasteful.  It’s downright abusive.  Kind of like a boss who asks you to show up on time when in fact you’re always on time.

Here’s where to put your money

Put your money to work for you.  Not in investments, not in CDs, bonds, stocks or mutual funds.  That’s like taking your money for a joyride without a seatbelt, for more reasons than we’ll get into today.  I’m not against investing, in fact I enjoy the thrill of the hunt quite a bit.  Stay with me…

Where your money will work best for you is in your mind.  Don’t start shoving all those Benjamins in your ear canal, that’s not what I mean.

The money we earn is for more than just today.  We’ve got to set some aside to give us peace of mind.  Ultimately, that’s the idea behind savings and retirement accounts, but those don’t give us much peace because they’re simply too volatile.

When our money (just a little, mind you, not all of it) is in a place where we can access it in case of emergency and we know we can count on it being there when we need it without having to stay constantly updated as to its performance or balance, we have peace of mind.

And knowing that it’s there for the singular purpose of giving us peace of mind, it will do just that.

Go forth, and be peaceful.