You shouldn’t put your money into savings, heres why!

You’re burning your money by saving it.

Most people teach us that we should be putting our money into savings, this is great, except for one small caveat. When you put your money into savings, you are actually losing that money. “What?”

YES, you lose your money when you put it into savings. For example, lets say you really want a nice expensive watch, and this watch at the moment costs you one $100. You may not have that money at the moment and decide that for the next year you are going to save up for it. One year down the road you go to buy your watch, and guess what, because of “inflation” (1.7%) the watch now costs $101.70. The money you saved, is now $1.70 short of what you need to buy the watch.

“But wait! You make interest off the bank when you keep it in savings!” The average APY (annual percentage yield, or interest) is 0.06% which means you made a whopping 6 cents, a whole $1.64 behind inflation rate. Even the highest APY (1.2%) falls short of keeping up with inflation. Putting your money into a savings account is a sure fire way to be broke by the time you’re 65.


So how can you beat inflation? It’s simple, INVESTING! The average stock market return is 7%, so not only do you beat inflation, you come out on top. If you had invested that $100, you could buy the watch and even a couple of candy bars!

When you invest you actually grow your money. And no, you don’t have to be rich to invest. There are many ways you can invest your money, one way is your 401k. Start putting more money towards your retirement and you will be much happier in the long run.

“Whats really going to grow my money?” Investing in seeds or companies. This does have a steep learning curve, but there are some amazing companies that have made investing easy as pie. Acorns and Stash. They take away the need to constantly watch the stock market and decide where you’re going to invest your money, instead, they have prebuilt portfolios that you can choose based on your preferences and risk tolerance.

With stash, you set up a weekly or monthly deposit into your investing portfolio and then just forget about it. With acorns, you connect your bank account, then it rounds up to the nearest dollar on what you spend and puts the difference into your portfolio. They are made to help you invest without even missing the money you’re investing! In the first year of using acorns I invested over $500 and didn’t even think about it and I’m currently building up my portfolio in stash. These apps are a great way to invest and even to just get your foot in the door.


Now I’m not saying you shouldn’t put any money into your savings. You will need money for emergencies and its nice to save up for things that you plan on buying sooner than later. If you plan on saving your money long term though, the smart thing to do is invest. Make your money work for you, rather than lose your money by putting it into a savings account.

Want to try out one or both of the apps?

Acorns: acorns.com/invite/GRLZH2

Heres $5 to try out Stash: http://get.stashinvest.com/gavynifkm8


If you like what I had to say, make sure your share this article with your friends. Happy Investing!