Is Your Money 'Lazy'? Here’s How to Put It to Work

A fat savings account may feel good, but letting your money just sit there could cost you more than you realize.

A piggy bank wearing sunglasses sits on the beach.
(Image credit: Getty Images)

You may have heard the saying, “Don’t work for your money, let your money work for you,” but what does that really mean? When it comes to personal finance, it means taking action to avoid having “lazy money.”

The term lazy money refers to funds you’ve earmarked for retirement that are not actively working to generate returns. One of the most common examples of lazy money is cash that’s sitting in a low-interest savings account, earning minimal interest. It may not seem like a big deal, and you might even feel you’re being “safe” by having that extra cushion, but lazy money can hurt you financially, limiting your ability to grow your wealth.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Jason “JB” Beckett
Founder, Beckett Financial Group

JB Beckett has been an adviser for 24 years and is the founder of Beckett Financial Group, a specialized financial firm that helps individuals and businesses in the Retirement Red Zone build Tax-smart Retirement Income Blueprints allowing them the freedom to overcome their concerns about inflation, market volatility and taxes to retire sooner.