Truth About Saving Money in Banks
Do you know who runs the world?
Communists, capitalists, or socialists do not run the world, rich people run the world and rich people have built banks to collect money. They tell you to save money. Since the banks are offering some returns on your saving, you are likely to save your money in the bank instead of keeping it at your home. Banks then use their money to build wealth by investing in businesses and industries. When you want money, you will be charged a higher interest rate, however, when you save money, you are given peanuts. Then, they also tell you to buy a house, a car, etc. When you start buying houses and cars, you are buying liabilities and you will.
When you save $1 the banks will lend $10. They tell you to save money because they can use your money to lend 10 times.
So, instead of saving money in banks, you need to invest your money. Instead of saving money in banks, you need to borrow money from banks. Whether the money is the money you have saved or the money you borrowed from banks, you need to use it to buy assets that can build you an income.
Do you know why they tell you to save money in banks? They tell you to save money in banks because they want you to become too dependent on the banks for your everyday needs.
Actually, saving accounts are scams. Saving accounts have been so normalized that you don’t even realize that it is a scam anymore.
A lot of people hoard money in saving accounts because they believe it is the safest option. However, the result is just the opposite. When you save money in saving accounts, it will lose value due to inflation.
If you have saved money in banks you have realized that you are not allowed to withdraw a large amount at once. That’s because they don’t want you to invest money. Contrarily, they are investing your money and making a lot of profits.
You have saved your money in the banks, yet the banks charge you fees for various services. They are taking your money and they are charging you fees.
Given the current economic climate and inflation, you need to save as much as you can. Most people can save only 5-10 percent of their take-home pay (after tax deduction or provident funds cut). However, considering the increasing expenses and the emergency funds we might need in the future, 5-10 percent saving is not enough. So, how do we save 20 percent or even 30/40 percent of our take-home pay?
Here is a simple strategy.
Make a list of your expenses and categorize your expenses into categories like necessities, wants, and luxuries. You cannot cut your necessities because you need them to live. You might also not be able to cut your wants because that’s how your life becomes interesting, however, what’s the role of luxury in your life, when you do not have enough savings for the future. Even your expenses under the wants category can be cut for certain months. You might also adjust your necessities by switching to cheaper alternatives for food or moving to a cheaper neighborhood.
If you want to save more, here is a simple way to start saving even when you are living on a low income.
Export income and expenditure data from your bank or credit card so that you know everything about your cash flow.
Now make a few categories such as housing (rents, mortgages, insurance, utilities, etc.), food (grocery, outdoor eating), transportation (fuel, insurance, tax, plane tickets, cabs, etc.), health (gym, medication), entertainment (movie, subscription) shopping, self-development (books, courses, etc. ) miscellaneous. Once you have done that total the amount you spent on each category. Now you can see how much money you are spending on different things. From there you will have to think about how you can cut your expenses.
In order to start cutting your expenses, you will have to make another category that includes shouldn’t have (something you purchased that you regretted), nice to have (something you like to have but you can live your life without having), have to have (something you need to enjoy life which other might consider useless), essential (something you cannot live without).
You can start cutting your expenses based on the list you have prepared. This kind of categorization will help you understand where you should stop spending, or where you should start limiting your expenses.