Truth About Saving That No One Tells You

[Mika]

One of the common pieces of financial advice you will ever hear is to save money, and use banks to build your saving.

Do you know why they tell you to save money in banks?

They try to lure you to save money in banks by offering you interest on your money and security to your money. However, when they ask you to save they are not trying to help you. They are in fact trying to trick you. The banks collect money from the middle class and the money will be used by rich people to build businesses. Despite having money to start a new project or upgrade their existing business they borrow from the banks because when they borrow from banks, they get into debt and the basic rule of taxation is you don’t pay taxes on debt.

You can get 2 X, or 5X returns if you save money for 5-10 years in high-yield bank accounts, however, by the time you get that money, your money will not be able to buy the same thing that you could 5-10 years ago, which means your money lost value.

 

[Augusta]

you are totally right about this analogy of yours and that is the damn truth that we need to tell out selves especially the low-income earners oh well all of this is still business the banks is not a Free Enterprise they want customers and they want profit so they devised all means by which they can make their profit

But the thing is that the bank don't only give money to the rich they also give money to the Poor. it is only that you need to meet their eligibility status so that they can also give you a loan though it might not be as high as the one given to the rich but at least we can still benefit from it to starts our small businesses or it is to expand the existing ones

But then all the banks need profit from it because the loans is not given free and sometimes it's with high interest.

 

[Sotherefore]

Wow , I don't know who you are but your write-up is one of the best I have come across today. I now understand the reason and the psychology why the banks will always keep telling people to save money with them. They might offer securities to your money which is one of the things we are interested but I believe what they are getting from us is much more higher than the security they are offering to our money base on your write-up.

Even if we have to fix our money on deposit , we may only be opportunity to get ten percent of our investment within one year which is even more than what they are using our money to do. In any case a lot of people are very much satisfied with the security the bank are offering to their money but we just have to understand that they are really making money from us.

All the things you said are true , the economy of our country is depreciating and people are using the money we have saved in the bank to enrich themselves and after they have returned the money we have invested to us after a certain period , the value will never be the same as things will increase in value. Thanks so much for sharing

One of the common pieces of financial advice you will ever hear is to save money, and use banks to build your saving.

Do you know why they tell you to save money in banks?

They try to lure you to save money in banks by offering you interest on your money and security to your money. However, when they ask you to save they are not trying to help you. They are in fact trying to trick you. The banks collect money from the middle class and the money will be used by rich people to build businesses. Despite having money to start a new project or upgrade their existing business they borrow from the banks because when they borrow from banks, they get into debt and the basic rule of taxation is you don’t pay taxes on debt.

You can get 2 X, or 5X returns if you save money for 5-10 years in high-yield bank accounts, however, by the time you get that money, your money will not be able to buy the same thing that you could 5-10 years ago, which means your money lost value.

 

[Abigael]

This is very true. It is something that no one tells you about saving for sure. Most people have glorified the act of saving in the bank that they don't see the bad effects of it or the things they could have used the saved money for.

For instance, instead of saving, you could invest that money in a venture that earns you more money. You could start a business, do forex or crypto trading or invest in stocks. That way, you don't keep money in the money when it could be working for you.

The fact that money looses value with time should be your big reason for not doing long term saving in the bank. Indeed it will earn you the interest but the value won't be the same as it was. You won't be able to but most of the current things with that money you saved. Always look for other alternatives to saving.