Money Loves Water

Holiday reflection by Peter Locandro, CEO, Financially Sorted

Over Christmas, I was lucky enough to visit my son in the USA continuing to follow and support his basketball journey. Over the years, I have met so many different people from many different countries and walks of like. It’s great to talk, learn and understand their journeys, their sacrifices, and what leads their young men to a similar position of our Joseph. There is certainly no one stop shop that fits all and every path is so different.

One afternoon, I was asked out for a coffee by a lovely couple, other parents (Richard and Yvonne) from New York while our boys were training. They were explaining to me where, in their opinion, the USA is currently poised, and I was explaining much of the same about Australia. We were sitting in a tiny café. Nothing fancy.

Richard and Yvonne explained that they are in a privileged position and had done quite well for themselves through business and property investment. Richard then made a comment to me that at first, I didn’t understand. Yet once I did, it helped clarify something for me and now I see why so many people stay broke or don’t succeed.

He said it calmly, almost casually: “Money loves water”.

I thought it may have been an American saying and I almost laughed. After clarifying what he said and my mind running around at 100 miles per hour, I asked him what it was supposed to mean.

He leaned in and said:

“Water moves. Money has to move too. If it just sits, it dies.”

I thought he was just the poetic type.

Later on, I realised he was giving me some of the clearest financial advice of my life (although, in hindsight, I have heard it in different forms throughout my life).

I thought it was important to share. He explained it to me like this:

1. Picture a man that you may know. Saved every dollar “for safety”. Worked hard. Lived modestly. Never invested a cent. Inflation slowly ate everything.
2. Then he said think of someone else. Similar age. Similar city. Started with small projects. Bought some modest rentals. Tested ideas. Failed. Learned. But most importantly, kept going.

Now picture ten years later.

One complained about prices. The other lived off income from assets he bought when no one believed in him. Same effort. Different flow. Many studies say the same thing.

Families who keep money moving into skills, assets, and businesses build wealth so much faster. Not from luck, but from behaviour.

Money behaves like water. Flowing water feeds everything around it. Savings alone don’t build wealth. Circulation does.

I can still hear his voice: “Money in the bank is a swamp. Money in circulation is a river.”

One path leads to dry paper, slowly losing value. The other builds streams of income that keep flowing, even while you sleep. Wealth doesn’t belong to those who hoard. It belongs to those who move wisely.

Your money will either work for you… or quietly disappear while you call it “safe”.

Is your money currently in a swamp or is it flowing like a river? If this is something that interests you, we can arrange a meeting with our financial advisor who can explain more and assist with the water around you. Feel free to reach out to our office for that introduction.