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Why Saving your money is the most stupid investment you can make

Posted by Arthur Peter on

Why Saving your money is the most stupid investment you can make

Many people have been taught by their parents to safe their money and put it on a bank account.

1. So you will have some money for retirement
2. Bank is safe

Let me show you some facts …

Why is this a big lie?

Let's say you get 1% per year on your bank account. Where I am that is very high with the current rates.

How much is inflation every year?
Some countries have 2-3% per year .. that is considered very low ..

Now I am not a mathematician .. but if your savings increases with 1% but decreases in value with 2% .. what does this mean after 10 or 20 years?

1%-2% = -1% x 10 years = -10%
1%-2% = -1% x 20 years = -20%

So even if I faithfully safe money on a bank account for 20 years, every month it means I am still loosing money. Money is devaluating with ??

You see saving your money and putting it on a bank account doesn't work .. you have to invest your money .. the only one for whom it works is the bank ..Β 

Banks are laughing .. they pay you an interest of 1/2%-1% every year and invest the money you give them and make an interest of 8%-20% every year … WOW .. who is laughing?Β 

Bank is safe

Another wrong thinking ..

First do a google search on what happened with the money that people had on banks that went bankrupt. Also if you do some more research you will be discovering that more and more banks are being declared bankrupt .. because they can't pay their debts or they made wrong investments, but the government is trying to cover it up .. because if people would discover the truth they would withdraw all their money from the bank and the whole economic system would collapse.

However, even if your bank is doing well .. there are many very safe options to invest your money without taking a lot of risk and still receive around 6%-8% interest every year.

That is way better than what you are getting right now ..

That is why I think it is stupid to put your money on a savings account.

I would advice every person to use their bank more as a way to funnel the money, but keep as little as possible money in your account and reinvest your money when funds come available. Find a way that works for you and at least try to create a return that covers the inflation in your country. So that value wise you are not loosing money.

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