We’ve all been told at some point in our lives that saving our money is the best way to secure a good future. However, there’s one simple fact that will make you think otherwise: inflation. If you stick all of your money into a single savings account and let it rot, then it’s going to be worth a lot less when you actually need it. Sure, it might not happen over a few months, but if you store all of your cash in a savings account for several years then it’s going to be worth less and less as the years go by. The solution? To stop saving your money.
There are better alternatives to a savings account
A savings account is often the easiest way to save your money. You simply just go to the bank or use an online service to put money from your regular account into a savings account. Interest will steadily make your balance higher, but never enough to cover for inflation. Thankfully, there are better ways to save your money, such as investing.
You can invest in many different things that will see a better return than a savings account. They take a lot more work than just putting your money into an account, but if you want to secure your wealth then you need to understand how you can invest your money. You could look at the best gold ETF and start a career in trading, or you could invest in a business that will be handed down your family. Another good investment to make is in property since it retains value a lot better than your money and it doesn’t suffer from the effects of inflation.
To put it simply, once you realise that you’re not getting a good deal with long-term savings, you’ll need to look for better ways to invest your money and to store it someplace where it can have meaning. It might seem like it will take a lot of effort, but assuming you’re willing to put in some time to learn how to invest your money, you’ll quickly pick it up and have a better home for your wealth.
Always have a savings goal
Money is better spent on a purpose, not to sit in your savings account. However, it’s also good to have some money stored away in the event of an emergency. To get the best of both worlds, make sure you have a savings goal set. Whether it’s to save up for the deposit on your first home or having enough to repair your car if it breaks down, aim to reach your savings goal and then use the rest of your money.
Whether it’s spent on investments, lifestyle improvements or even entertainment, break away from the savings account mentality by realising that your money has more value now than it will in a few year’s time. Once you stop saving money for no reason, your life will completely change for the better.