Conventional financial advice encourages us to save money. When you talk to someone about getting their financial life in order, they almost always say: “Yeah, I know I need to start saving more money.”

Is saving money really a wise way to gain wealth and financial independence?

To begin with, there’s really no such thing as saving money. What most people believe to be “saving” is really spending. Think about it, if you stick $1,000 in a savings account and you’re not investing that money, it’s losing value every year that it sits there.

What I’m talking about is inflation. Inflation causes money to lose it’s value at about 3.43% per year. Add to this the value you could be creating by wisely investing that money and, even if your return rate is only 5%, you’re actually losing 8.43% a year by saving money.
So mathematically speaking, if you have $1,000 in the bank, you’re spending $84.30 just to have that money in the bank, and once you add your service charge of $60 a year, you’re spending well over $100.

Of course, it’s good to have some available money in case you need it for a sudden financial emergency, but beyond that amount, saving money becomes losing money. Of course, the assumption is that a savings account is “less risky” than many investments.
This is only true if your knowledge of how to invest money isn’t sound enough to earn you a good rate of return. As I said in the first myth of modern investing, your level of risk is directly related to your level of financial awareness and education.

Another thing to consider is that “saving” money assures you a certain loss of at least 3.43% a year, and that’s without considering the lost opportunity of not investing that money.

However, the most dangerous thing about saving these days is that the average inflation of just 3.43% is going to rise really fast within the next few years. If you haven’t heard about this yet, I’ll tell you about how you can find out more in just a moment.

As you are reading this, thousands of people who have specific knowledge of where and WHEN to invest their money are positioning themselves to get rich…and at the expense of those who do nothing with their money. Today is the day to decide which side of the wall you’ll be on…

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