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Is your money lazy?
Imagine you employ a painter to do the walls inside your house. He shows up in the morning but, instead of painting, he sits on your couch and sleeps the entire day away.
When you get home in the evening, you walk in and see nothing has changed. The painter did nothing for you, and your situation is exactly the same as it was when he first came into your house.
Your Money Is Your Employee
If you keep your money parked in a standard bank account, that’s exactly what it’s doing for you: Nothing.
Just like the painter, your money has a job to do. That job is to grow. If you wouldn’t let the painter be lazy, you shouldn’t let your money be lazy either.
The Problem
The problem is that the majority of banks have it rigged to do just that.
Chase Bank's savings account has an interest rate of 0.01% APY. And their “Premier” option isn’t much better at 0.02% APY.
That means if deposit $1,000 at the beginning of the year and let it sit, at the end of the year you’d have roughly $1,000.10.
So how do we beat the banks? We play their own game against them.
The Strategy: Bank Account Bonuses
Banks want “new money.” They want to acquire new customers so they can take that money, loan it out to others, and collect interest.
In fact, they want new customers so badly that they’re willing to pay for them.
Chase is currently offering a bonus of $400 for opening a new checking account and making $1000 in direct deposits within the first three months. That’s a 40% return in 90 days.
Compare that to the 0.01% they’ll give you for letting your money sit in their savings account for a full year.
You are much better off depositing your money, collecting the bonus, and then pulling that money out to repeat the process somewhere else.
The 4-Step Plan
Step 1: Find a “Sign-Up Bonus”
Right now several banks are offering substantial cash bonuses if you open a new checking account.
Step 2: The “Business” Move (Advanced)
If you have a side hustle, sell things on eBay, do consulting, drive for Uber/DoorDash, you are a “Sole Proprietor”.
Why is that important? it means you can open a Business Checking Account. These bonuses are often much bigger - we’re talking about $500 and up.
Step 3: Park the Profit
Once you get the bonus (usually after 90 days), don’t let the money just sit on the couch again. Move it to a High-Yield Savings Account while you plan your next move.
These accounts are a great place to keep your money while it’s not actively working on a sign-up bonus because they offer much higher interest rates than a standard savings account (typically 3% and up).
Step 4: The CEO Dashboard (Crucial)
This is where most people mess up. If you open 3 new accounts, you might forget where your money is. You’ve got to be able to keep track of everything. You can’t run a business on sticky notes.
You need a dashboard that sees all of your accounts in one place.
My two favorite apps for this are YNAB and Quicken Simplifi. YNAB is great if you like to really micromanage every single dollar, or use Quicken Simplifi if you prefer a higher level view that still gives you control.
(If you want to shop around for other budgeting options, 👉 check out this list of top apps here.)
The Rules of the Game
Read the fine print. Know exactly what you need to do to get the cash.
Don't close the account too soon. Some banks take the money back if you close the account before a certain amount of time. Again, read the fine print to know for sure.
Track everything. Use the dashboard in Step 4 so you never lose a cent.
Closing Thoughts
Stop letting your money sleep. Wake it up and make it get to work for you!
Stay responsible,
Ritchie the CEO