Why Saving Money is a Terrible Idea

How many heard your whole life that you need to get a job, get married, save money, and buy a house. Those are all great endeavors, but the one I want to talk about today is saving money and why saving money is actually a terrible idea. Wait prefaces video with us. Saving money in itself is not a bad thing.

However, saving money just for the sake of saving money and feeling comfortable and feeling secure is not good. Having the emergency fund is great. Being prepared for things that you don't know are going to happen is great. However, once you get into that comforter that you actually have a security blanket or security net under you, continuing to save is actually regressive.

It actually is the opposite of helping you progress on life. So Kevin O'Leary, he's one of the, he's mr wonderful from shark tank. I love watching that show. I love him level LA LA. And his big thing is you want your money to not sit and do nothing. When the money sits and does nothing, it doesn't do anything.

This can't do me anything. Just sitting here. It can't, it can't do anything by itself. So what you have to think about your money on us as soldiers. Soldiers go to war, soldiers bring back prisoners. So you want George to go to war for you to go somewhere else. And bring back prisoners. You want him not to be alone, but bring back his other people who are imprisoned.

You want your money to grow. You want your money to continually and always continue to work for you. And that's the big difference. People, rich people do not work for money. They make money work for them. That's why investments are so important. So. Get your money working for you. Saving money is also a terrible idea when the savings rate is very, very low.

The interest rate right now, interest rates in 2019 and probably 2020 and going forward are very, very low. A 2% APY is awesome, right? That's the yield. When you save 2% yield, that's great, right? Well, it would be great, but here's the thing. Here's the caveat. Inflation. According to the U S labor department as of August, 2018 2019 excuse me, is 1.8% well, 1.8% and your interest rate is two so two minus 1.8% you're down to 0.2% interest.

Does that sound exciting? No, it does not. You're going backwards. That's why money has to work, work, work. Sitting there doing nothing, does not do anything. Saving money is a terrible and horrible and regressive idea, especially when it's a low interest environment because you're really getting nothing.

It's better to keep your metric, to keep your money in a mattress and hope things work out. And here's the thing. Hoping really doesn't work out ever on the most important books I've ever read in my life was rich dad, poor dad by Robert Kiyosaki and one of his rich dad. Principles are the rich do not work for money.

The money works for the rich, and that pretty much means we've been talking about this whole time, trading hours for money, going to a job, doing things that. Suck your time away and making money from that case is not a bad thing in itself. However, the rule, if you want to be rich in this life, which rich you define, you really know.

The fact of the matter is this, you must make money work for you. It can't sit there. It cannot just sit and do nothing. This principle is the reason why people start businesses. The reason why. The owner of sports franchises make so much dang money because guess what? They're not giving the ballpark Franks away.

They're not selling the booze. They're the ones who sit in their office and make sure the numbers are right and manage people. Making money. Work for you is the number one priority. When you get to a comfortable place financially and have some, some security in your life. Because if not, you're going to keep on going backwards and you don't want to go backwards.

When it comes to finances, and I've been kind of high level and not really practical interior, practical things to actually get an ROI, return on investment and your money. Now, some people have side hustle with some people do graphic design or wash cars or clean houses or. There's so many things.

Make YouTube videos. There's so many things for side hustles, so many things, and it's so much better to put money into that cause it can grow real estate. Obviously. That's a no brainer. In my last video, I talked about how you can depreciate real estate and why it's actually moving. Very, very, very tax advantageous and people who own all people who own a lot of real estate usually pay almost no tax, which I don't know about you.

If I can pay less tax legally, I am doing okay. Everything I can to do that. And then lastly, stocks, bonds, things of that nature. Things that I'm not too familiar with. But those are also another Avenue to get an ROI because that's the whole thing about money. You don't want it to sit. You want it to continue getting a return over and over again and investing it back using as little as possible and investing it back.

Because at some point, you may not be. Able to work as hard as you do right now and preparing for that right now is in your best interest. Those are all reasons why savings is a terrible idea and yes, this is not a popular opinion, but I hope this made sense. Why do you guys not save money? There's a lot of different reasons.

I have to, I've pretty much talked about the reasons why you want to make it grow, but are there any other reasons? Make sure to comment. I want to hear what you guys have to say and maybe I will change the way I look and deal with money. Good luck though. It's pretty, pretty solid at this point.

Liken, subscribed the video and to the channel and I will see you guys on the other side.