Why Banks Tell You to Save...

Banks are, of course, a necessity in modern society. You can’t live without a bank account, so you can have money come in as you earn it, and go out as you spend it.

But they’re lying to you.

And they’re doing it for their financial gain, and at your financial expense.

Banks are just like any other high street store or company, desperately trying to get your business by any means possible. And by your business, I mean your money.

You’re nowhere near as dependable on them as you think you are, and in fact, being too dependable on your bank is having dire consequences on your ability to build wealth.

Here’s the truth about why banks tell you to give them your money, and why you shouldn’t.

Why People Save

There are a number of reasons why people still choose to hold most of their wealth in cash.

• They still see investing as too risky.

• They trust their bank to have their best interests aligned with theirs.

• Cash is still a viable vessel for building wealth.

But the reality is that… none of those three statements are true, and the sooner you realise this, the better.

People typically use banks for two main things:

Cash flow, and wealth building.

• By cash flow, I mean having your earned income coming in, and your bills and other expenditure going out.

• By wealth building, I mean… well, building wealth.

But the bottom line is that you need to eliminate that second option if you want to truly build wealth and achieve the life you want to live.

Banks, run by rich people, tell poor people to save so they can take your money, lend it to themselves, and invest it, generating returns that far exceed both interest rates and inflation.

In the end, they’re much richer, and you’re poorer because you have no assets, and any interest you earned on your cash is being cancelled out by inflation.

That’s why banks tell you to save. It’s not for your benefit. It’s for theirs.

What Happens To Your Money

When you save your money in a bank, you’ll receive an interest rate that is far inferior to returns the rich see with assets. The worst part?

They’re using your money to get those superior returns.

It’s called fractional banking. This means that the money you have in your account… doesn’t really exist. Instead, it’s off making money for other people. Rich people.

Interest rates currently sit at around 4%, which is quite high in all honesty. But, is that really such a good thing for savers?

For the period between the ‘08 financial crisis and the aftermath of the COVID pandemic, when quantitative easing started going crazy to avoid recessions, interest rates were pretty much non-existent for years.

For a few years though, savers have got a tidy return. But… there’s just one problem.

Inflation.

In recent years, inflation reached double digits, even in some of the richest countries in the world. You factor that into savings rates, and you’re losing money in real terms.

Sure, you also have to factor inflation into asset returns, but the bottom line is that asset returns are always far superior over a multi-year time frame.

And that’s not secret, gate kept information.

The rich just know the poor are too scared to lose a cent, to give themselves the possibility of making millions.

• If you’re earning 4% interest on cash, but inflation is 3%, your real return is 1%.

• If you’re earning 10% in the S&P 500, you still have a tidy 7% return when the same rate of inflation is factored in.

Not only this, but banks are the one’s shamelessly telling you to open up a high interest savings account with them. Why?

So they can take your money and invest it for themselves, at much higher rates of return. Banks don’t tell you to save so you can build wealth for yourself.

Banks tell you to save, so you can provide the liquidity for the rich to get richer.

Because who owns the banks? Bingo. Finally you’re getting it.

Savers provide the capital for the rich to be able to borrow more, and invest more, speeding up wealth inequality. The savers provide the liquidity for the rich to get richer, and get nothing in return with their little savings accounts once you factor in inflation.

Your banks are lying to you, my friend. Only broke people try to build wealth with cash; something that’s always going down in value.

The bottom line is this:

If your main wealth building vessel is cash, you have no right to complain about wealth inequality. You are funding it, and you’re too close minded to notice.

What You Should Do Instead

The rich own, and create assets. You need to start doing the same.

• Stocks.

• Real estate.

• Gold.

• Starting your own business.

Even a bit of cryptocurrency if you’re okay with high risk.

Cash is not a vessel for building wealth, despite what your bank says. It’s becoming increasingly worthless as more comes into circulation.

It still boggles my mind that in 2025 and beyond, so many people are perplexed with the idea of earning 8-10% a year on your wealth.

‘Where the heck can you get that sort of return?!’

Literally the entire freaking stock market, Karen, and pretty much every single other asset class besides cash.

Eliminate the fear of losing money. That’s what stops people from investing.

People say they’re scared to invest because they don’t want to lose money…

I also hate losing money, more so than you. But… that’s why I invest.

The S&P 500 is up 87% in the past 5 years. That’s right, 87%. That includes:

• A global pandemic.

• The worst inflation in decades.

• War in Europe.

• Trump’s tariff madness.

Too many people are holding onto outdated myths and misconceptions about investing, and thanks to a monetary system which is designed to shrink the value of money over time, these myths are starting to have dire consequences on people’s lives.

It’s a simple conclusion:

The rich have assets because they know how to build wealth. The poor have cash because they’re told by the banks to save, and they know no better.

Stop holding cash to build wealth. Stop making the rich richer.

Use your money to make YOU richer, and pile it into wealth building assets.

Financial illiteracy is having dire consequences on the lives of millions of ordinary people. And that’s why I’m writing these blogs.

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