We Have All Been Taught Wrong About Money
Alright so this is going to be a pretty short article.
Just long enough to get a point across and boggle your mind just a little bit.
To put it simple. YOU HAVE ALL BEEN TAUGHT WRONG ABOUT MONEY (including me).
What We’ve Been Taught
I’m a millennial, yeah I said it, and I know many of you are as well. But here’s the thing, being a millennial is pretty great. We get to learn all sorts of things about money while growing up.
But, there’s one thing that we’ve all been taught wrong about … money.
I’m sure that while you were growing up, your parents would always tell you about saving money etc, and that you’ll be fine if you save money. It’s not your parent’s fault, but they were wrong!
Why save money? How is that going to help you get ahead in life? Think about it this way, if you’ve got $5k sitting in your savings account, that’s all it’s doing for you … it’s just SITTING!
You’ve also been taught that you should go to college, get a degree, grab a career with a good salary and you’ll be golden. Does this sound familiar? I bet it does. I can think of over 100 others who have been told the same thing growing up.
Now don’t get me wrong, I’m by no means saying a higher education is a bad thing. If a higher education is important to you, then go for it! Shoot for those stars!
I’ll tell you one thing though, you’ll never be wealthy or anywhere near debt free in your lifetime if you do. Why? Because you have been taught wrong about money for your entire life!
Why Saving Money Is A Waste
This section is a bit controversial and I can understand why, but really though, it’s all a matter of if you want to do better for yourself or not.
Saving money is a huge waste. It doesn’t do anything for you.
Think about it this way. You put your money in a savings account ……… and then what? It just sits there and does nothing for you.
Most people who put money into a savings account and they earn on-average .03-1.0% in interest per year.
That’s not much at all. If you put $10,000 in a savings account today, 1 year from now you’ll only earn $100 on it, in interest. What a waste!
CD’s are the same exact way. If you invested $10,000 in a five-year CD at the national average rate of 1.15%, you would only earn about $592 in interest at the end of five years. It’s just not worth it!
What To Do Instead
Savings accounts are junk, Cd’s are useless, so what’s the smartest idea here?
Invest in yourself or invest in something you’re familiar with.
I’m not saying you should do this but I’ll use my own example. I never let my savings just “sit”. Instead, I invest in my own products and services. I also invest in the cryptocurrency market and trade on a daily basis. Now I know what you’re thinking, “but Bitcoin is junk and all it does is drop in price”. You’re absolutely correct, but I’ve been day trading the market for quite some time now and it’s almost harder to lose than it is to win nowadays.
I learned how to trade with a small amount, built up my portfolio, and now I’m easily earning 3-6% on a daily basis – every single day consistently.
Why am I telling you this? Think about it, I’m earning 3% daily and it’s compounding each and every single day.
Here’s a comparison example. I put in $500 in my cryptocurrency account to trade with. John Doe up above puts $500 into a 5-year Cd. I earn 3% daily on my $500. John Doe earns 1.15% total in 1 year. By the end of 1 year, I’m at $24,000 and John Doe is only at $505.75. Below are side by side images of the calculations.
I’m not suggesting you go ahead and start investing in cryptocurrency or anything. I’m just saying that this is what I do instead of putting my money into a savings account. Why “save” when you can “build” and grow more?
Make your money work for you on auto-pilot!
I hope this article added some insight into how you control and manage your “savings”. The point here is, if you want to make a lot more than what a savings account earns for you, find something to invest in instead. You’ll be happy that you did. If you liked this article and found it useful, follow us on Twitter.