Why Saving In A Piggy Bank Is Losing

Savers are Losers. This is what Robert Kiyosaki tells us in his books and videos. Basically, what he means by 'savers' are those who keeps their money in the banks or worst - the piggy banks. According to the article Why Savers Are Losers, it is not always enough to only save money, we also need to know what to do with it in order to keep or increase its value in order to fight inflation. Inflation deflates the value of our money. In the Philippines, the rate of inflation is around 5-10 percent. Do you now understand what Kiyosaki means? Savers are losers because when you SAVE using savings accounts in the bank or using your very trusty piggy banks, you are losing it's value because the rate of inflation is bigger than the interest given to you by the banks. A lot of Filipinos put their money in the banks. They believe that saving in the banks is the best thing to do in order to protect their money and hoping that the value will grow in time. But no, it is the biggest false belief in my opinion. We should avoid putting our life savings in SAVINGS ACCOUNTS and use other financial tools instead such as stocks, mutual funds or UITFs. In short, one must start investing instead of saving. Worst case scenario is when you put your savings in the piggy bank. I guess it's okay if you intend to use it soon but if you intend not to use this in the next five to ten years, then it is not advisable to put it there. First, the money you put in the piggy bank will not increase its value over time and second, it has the possibility to be lost. Savers are losers. They save to lose. They save the money while it is losing its value in time. Saving in savings account or piggy banks is good only for short-term goals. Consider other financial instruments when you intend to keep your lifetime savings or retirement funds. So, where do you put your money?

Mark Hugh Neri

Looking for financial planning workshop or for life and/or health insurance with investment options? Got questions related to personal finance? Feel free to message me at Money Gizmo (see link below)

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