We need banks. Don’t get me wrong. But do we need to keep all of our money in banks and “save”? Absolutely not.
I always talk about investing but today is the math behind losing value, not money.
If you are barely getting a 1% return on your money in a savings account, but inflation rates hold steady at 3.5%…you will make money but technically lose value.
For example: you put $10,000 in the bank and after a year, that grows to $10,100. So you made $100.
However, inflation and cost of living rose by 3.5%….which means what cost you $10,000 now costs you $10,350.
So essentially, you made $100 but lost $250 in purchasing power because of inflation.
Yes, that is a simple way to explain it but saving is not enough. You should consider investing in something that at the very least outpaces inflation rates. That’s just simple math!!
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