Money in the Bank... You're losing Money!

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Money in the bank isn’t always the best way! Of course, we all love to have money in the bank and obviously do need some in there to keep on top of bills but we shouldn’t keep more than we need in there!

Firstly I would like to point I am not an economist so what I write is simply my beliefs from reading/listening to people like Robert Kiyosaki and also from my own experience!

So What Really is the Issue Here?

Having too much money and not knowing what to do with it? You and me both wish we had that problem! You may look at it that way or there is a different to look at it also but let's look at it as if we had some spare money lying about first!

You may be wondering why it isn’t a good idea to put money into a savings account? Well, the banks with the best savings accounts are offering just over 1% APY(annual percentage yield). So say you had $10k in your savings account you receive just over $100 in interest. Not very inspiring but you may think at least it is money making money even at a very low rate!

Money Isn't Always Making Money 

It turns out it isn’t money making money when you take inflation into account. Inflation in recent years is around 1.5% on average, which means you have actually lost money! Your $10k is actually worth less 12 months later because of inflation even taking the banks 1.05% interest rate into account. So that is the example if you had some spare money and you were thinking of putting it into a savings account.


So what about those of us who don’t have $10k lying about wondering what to do with it? What should we do? One of the first things I learned from reading Robert Kiyosaki was about what was an asset and what was a liability. His famous wake-up call is that our homes are actually not our biggest asset as we are lead to believe, it is a liability because it makes us no money. Money only goes out in the form of a mortgage, taxes, living and maintenance fees. 

But one of the most valuable lessons I have learned from Mr Kiyosaki was managing my behaviour towards money.

Can you think of someone who gets a pay raise and then goes out and buys themselves a higher spec car? Or maybe even upgrades their house? Normal enough behavior right?

I had to Change My Behaviour Towards Money 

That would have been my behavior towards those scenarios before. Now that has slowly changed thanks to some financial education from Robert Kiyosaki. Before I had 2 cars and there was only 1 of me! One was a work vehicle and I drove it nearly all of the time. The other one was an Audi A4 which I drove maybe once or twice a month, sometimes not even that!

Now I have one car, a Ford Focus between 2 of us and it produces the same result. It gets me where I want to go and for less money for that matter!

My point in this is I was wasting money because I had no financial education and was unaware of the options out there for me. Now I know that instead of increasing my spending according to my income and leaving money in the bank on low-interest rates which actually lose me money. I need to invest my money so that my money works for me.

A word of warning though before you do that you must invest in yourself and your education first. I would advise reading or even listening to some books from the likes of Robert Kiyosaki and pick a route that interests you. There are many routes you can go down and get started. I decided to go down the digital route and learn affiliate marketing with the Six Figure Mentors as personal growth is a massive part of the education alongside digital marketing.

Time to Start Looking a Little Differently 

Maybe like me, it is time you started looking at things a little differently. No longer are the banks offering decent interest rates so it is time to be smart with your money and with your education. It is never too late to get started, all you need is the willingness to learn and to have an open mind.

The banks offering the best interests rates are online banks, a sign of how things are changing. The traditional brick and mortar banks are struggling to keep up with the online banks and that is a sign of things to come in every sector!

If you have any questions please put them in the comments box below and I will get to them as soon as I can or reach out and connect with me on our Facebook page, Paul and Sarah. 

Thanks for reading,


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