Remember that joy. That sense of how much you already have in that bank. Plus that little or no interest that climbs on it.
You already have thousands of savings on you. Or maybe you’re planning to.
I don’t say you made a mistake to save or if you are planning to now.
What I say is – the way you and I save money to me is a stupid model because we’re only enriching those banks. What I only save for are speculative, transaction precautionary motives. Before I section my expenses on those three areas, I subtract a higher share that I would have saved to invest in an asset.
Wait! I don’t say you should spend on liabilities instead of saving now , but rather assets that will flow in more money for you.
For instance, do you wanna tell me the way a thousand Naira valued the last 5 years is the same as of today?
Even if the value digits in bank stay , this money of a thing devalues everyday.
Why then do you waste your money by saving? Savings is a liability. Considering the looks of everything now.
Most finance experts would tell you to save, save and save for transactional motives and future securities. Fine! But what if you turn your savings to an apprentice who manufactures more money for you through assets? In forms of buying stocks, bonds, golds, lands, and the likes. Isn’t that better?
Remember, a liability is any property which doesn’t bring values to you but even rather takes from you. Savings, as I would say, if not properly or smartly handled could be a liability because it’s useless and it even devalues every single day.
As long as the government prints more money, so will the value depreciate. Why would you then keep on saving most of them?
What you could save for is the precautionary and speculative motives of saving money. I’ll explain them in the last paragraph. After subtracting those two, invest the rest in assets.
You may go into good debts after you even exhausted your savings. Use other people’s money such as banks do to invest in assets – instead of saving everything.
What if I tell you one of the things that helped me in establishing is going into debt? If at all you’ll save, you should have a soonest target of withdrawal to invest the money with.
Table of Content
Banks Spend Your Money
Your bank gets money from you to invest on what would enrich them. You save your money in bank thinking it’s there, get few interests as incentives, and when you ask withdrawal, banks pay you from new and fresh savings from other people.
I’m not discouraging you to save in banks but all I’m saying is you can copy this bank model you.
Fine. Commercial banks are better off the home small mud safes or roof safes, to guide against the danger of an unexpected robbery.
But still, you can leverage out greater wealth if you don’t save, but rather invest in assets that increase in value like gold, stocks, lands etc. If you won’t consider investing.
When Pulse asked Mark Cuban, an American investor and a billionaire why he said saving is a bad idea, Cuban said,
‘‘Yeah, I said it, and I’m well aware it’s contrary to everything you’ve been told by the scarcity-minded people you’ve been surrounded by your entire life. You know, the friends and family members with stable jobs and a fixed income. The people who’ve never even attempted to do what you want to do.
”Saving money is not the best use of your money. Case in point, when you hear Forbes or whatever, talk about the richest people on the planet, they don’t base it on how much cash they have in their personal account. They base it on the amount of assets, cash flow and profit each person has. Cash saved is useless, cash invested is priceless”.
Savings Place a Speed Breaker on Your Road to Wealth
Imagine how frustrating those speed bumps on roads could be when you rush to meet a flight you’re almost late for! Wouldn’t you feel like pressing a fly button from the gear?
You do expect more wealth than you have now but saving is slower process that can even hinder your wealth. Just as that road bump reduces your vehicle speed.Subtract the transaction, speculative and the precautionary motive for keeping money from the whole money. Invest the rest, which you would save into assets. That will make you more money greater than the infinitesimal interests rate from banks on your savings. You won't only have a stream of income from your investments but also skyrocket to wealth.Click To Tweet
You Limit Your Ability to Think Outside the Box
As I started with, you think in yourself the joy of the money you have in bank. By that, you wouldn’t think that this money can even be a generator of its multiples.
Thinking outside the box means being abnormal. You need to do what the ordinary middle or poor class don’t see as normal if you want an extraordinary wealth.
Savings relaxes your brain nerves. Savings won’t make you think outside the box and if you don’t think and leverage out your choices uniquely, attaining wealth might be tough.
Savings Make You Lose Opportunities
When you expose yourself by expanding your mentality to increase your means of earning through assets, you’ll automatically attract opportunities. You do know great entrepreneurs look for opportunities in markets. To come in, dominate and take over before the crowd rush in.
If you have the investing-rather-than-saving mentality, you’ll be sensitive to know when to invest and when not to invest and when the market crashes, you’ll know how to use the advantage for yourself.
As you chase opportunities, opportunities would also chase you and wealth is soon at your fingertips.
Savings is Insecure
Recently, I was in a discussion with two women. We were discussing on business and financing. One of them talked on how her siblings was sick of cancer and she had to spend all her lifetime savings in bank on that victim.
The sad news is not that my lady spent her life-time savings. The sad news is that the cancer victim died few months after these millions of expenses.
I don’t say you should watch your sibling die when she has an issue which I don’t pray of. But I’m telling you, that so-called secure savings can be spent in seconds if you don’t invest with them.
Let alone of that, it’s not only sickness that makes our savings insecure, but also self expenses. See! Many things happen to you and me and can still leave us good when you and I don’t spend our savings.
Now, the only thing that makes our savings secure for these spending is to invest with them. Things would still go right.
In conclusion, we keep money for three motives as I earlier said:
- Transactional Motive
- Precautionary Motive and
- Speculative Motive
Before you partition your whole funds into these 3, cut a larger or half-share of what you want to save separately to invest in assets.
Recently, Grant Cardone confirmed this my style by what he said:
”This is why saving money is useless. Personally, I don’t save money; I only store it for a short period of time until I can invest it.
Saving cash is like saving a legal pad — it’s worthless because money, like any paper, is only good when it’s used. If you leave money in savings too long, it disappears”,
If at all you’ll keep anything, you may let it be on those 3 motives and see how you’ll skyrocket to wealth. Ask questions on areas you feel to share.
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Godwin Oluponmile already helped many entrepreneurs achieve financial dreams. He’s a vast entrepreneur under a degree in English and International Relations.
Godwin is a freelancer who found great joy writing about maintaining financial and purposeful living.
He’s a poet, a guitarist, and a public speaker. Consider regular updates from him, following him on Facebook here