Hi guys it's mark, so it's true saving money is costing you a fortune. Now that might sound like a pretty big statement to make. However, times are changing and people that are saving their money will - and i really hate to say this - they're just going to be left behind. Think of your savings account a bit like this bucket and your money like this water, the more money you pump into the bucket.

Of course it starts to fill up, but, as you can see, it's not very effective because it's getting drained by all the holes. Oh, maybe it wasn't the best idea to film this part in my studio, so today we're going to be discussing what all these holes actually are and how you can start plugging them in your life so that you can actually start getting ahead and building your wealth. So, if you're ready to dive into the truth about saving, then smash that, like button for the ltube rhythm and subscribe for more videos about making money, would you like to live in a world where all your choices were influenced by someone behind the scenes secretly pulling At the strings and conducting your life like some kind of orchestra, this has given me huge low-key vibes, but unfortunately this is far closer to reality than you might realize. For years now, institutions like banks and governments have been taking advantage of people who haven't been taught.

How to manage their money and it's not their fault. The schools just don't teach this stuff. Saving money gives people the illusion of control. Meanwhile, banks are making the big profits right under our noses.

Let me explain in the past, you are actually able to walk into a bank with your money and demand to exchange it for gold. This kind of makes sense as it's a bit inconvenient to travel around with blocks of gold in order to buy goods and services. So therefore, money was created. This was called the gold standard, but it was stopped in 1933 and the us dollar, like most other currencies, became what we call fiat.

This means your dollar now holds value because the government says it does which gives them much more control over the economy, as they can decide the rate at which it's printed. So it turns out that the money that most people chase and hoard is a bit like monopoly money. It only has value because the game says it does to put the icing on the cake. The banks then offer to store all of this money for you.

In return for a measly 0.5 interest rate, all while they're using it to generate huge profits, it's no secret. The banking is one of the wealthiest sectors. However, it wasn't always that way. They used to be just a place that looked after your money and made a fair profit.

However, over the years they have just become more hungry for new ways to use our hard-earned money to boost their income. A good example of this is the selling of subprime mortgages, which is one of the reasons for the 2008 financial crisis which left us, the taxpayers having to bail out the banks. Just to clarify i'm not saying that the banks are completely evil. They just act in their own self-interest like most businesses, and we can't blindly trust them to have our backs.

Many millionaires, such as robert kiyosaki, who is the author of rich dad poor, dad, are very keen on saving what they call god's money, which is gold and silver. They call it this because it has real value rather than the promise value of the paper dollar. In my opinion, this is a good strategy for the rich, as it offers a great way to protect your wealth. However, you are trading potential growth for security, which isn't right for everyone, especially if you're young, when you can afford a little bit more risk.

I still feel like i'm a spring chicken in my 20s, so i don't hold much gold at all, i'm far more interested in the emerging cryptocurrency markets. Without going too far in depth the banks heavily dislike crypto. It challenges everything that they stand for and threatens their position in society, as most cryptocurrency is decentralized. It gives the power back to the people, and i personally, like the sound of that.

That's one of the reasons why i've invested five percent of my portfolio into bitcoin and ethereum, and i might even be looking to expand that even more. Although the banks do make it really hard for me to invest in crypto and they've even closed, one of my bank accounts talking to cryptocurrencies. If you want to pick up ten dollars worth of free bitcoin from coinbase, then just check out the link in the description. For this next point, imagine you have let's say: ten thousand dollars in your bank account earning you 0.5 interest per year, which is well over the average rate at the moment, if you froze yourself for 1 000 years in one of those cryogenic chambers, then when you Emerged and checked your bank account.

You would have nearly 1.5 million dollars. Isn't that amazing? Well, actually, no, it's pretty terrible as even though it's had all that time to build up the value would be less than the 10 000 you had in the first place. If we assume an inflation rate of at least 2 per year, which is a healthy inflation rate for an economy now, obviously this is a pretend scenario. However, the point remains the same: by leaving your money just sitting in a bank account it's actually slowly being eaten away by inflation every single year.

I've seen this firsthand as the same dollar today used to buy me far more. When i was younger all my life, i'm starting to sound like my grandad, because with a dollar i could buy a movie theater ticket and a bag of fries. Now it won't even buy me a tango ice blast slushie and for real those things are really expensive. In recent times, this has been getting worse, as inflation has been reported at 5.4 percent in the usa, which is, of course, just devaluing your money even more but mark.

Why does this happen, or why can't we just stop it well before i answer that, can i just say: you're looking good and i'm loving the new wig. Thank you. I appreciate that, but back to your question, the first factor is called demand: pull inflation. A good example of this is the recent car shortage.

This caused a higher demand for used cars, which drove the price up. The second factor is: cost push inflation, i'm very familiar with this, as i'm currently building out my north wing and building materials as well as wages are going, quite literally through the roof, the lumber price actually spiked 400 in early 2021, which is absolutely crazy, and then This is just pushed onto the customer, therefore, making houses more expensive, resulting in you've guessed it more inflation. The third factor that everyone always talks about is the increased money supply. This causes inflation when the money supply increases faster than the rate of product production.

Put simply, there is just too much money and not enough products, and shockingly due to the stimulus checks that were pumped into the economy, 40 of the us dollars in existence were printed in the last 12 months. This means that we're heading into uncertain times. So it's more important than ever to invest wisely in order to beat inflation. The markets will historically give you an average yearly return of eight to ten percent, which would be a good option for most people.

It's extremely simple logging onto an investing, app and buying a low-cost index fund like the s p, 500 and then just holding it long term. A great app to use if you're in the usa is public.com and they're also currently giving you a free stock worth all. The way up to a thousand dollars with the link in the description, if you're in the uk, i personally like using free trade and they're, also giving you away a free stock worth all the way up to 200 pound with the link below investing in real estate. Can also be a great option if you have enough money.

This is because you can take advantage of leverage when you start doing this you're, actually using the banks to your advantage by taking out a mortgage. Low interest rates and inflation become your best friend, as it makes a loan easier and easier to pay off each year, whereas, if you're saving money, the inflation is eating away at it and not the money. You owe we live in a consumer society that psychologically programmed us to behave in a certain way. You've been lied to all your life by your parents, friends and teachers, leading you to be tricked into doing things that you actually don't want to do on many more occasions than you probably realize so i'll give you the same choice that morpheus gave neo in the Matrix, you take the blue pill and you wake up tomorrow and you believe, whatever you want to believe or you take the red pill and you see how deep this rabbit hole goes right.

Have you picked well, as i have no way of knowing which pill you pick i'm going to assume you want to know the truth. One study suggests that 90 percent of teens reported having experienced peer pressure, while 28 reported that their social status was boosted after they gave in to peer pressure. This is pressure to buy the next shiny object like designer clothes and luxury vacations. When you really can't afford it, many people save up just enough money to spend it on one of these items and find themselves back in the same position again saving for the next shiny thing.

One of the big reasons for this is the money, is so easily accessible in a normal savings account, and that is very hard to resist. Just to prove this point, more than half of americans have less than three months worth of expenses covered in an emergency fund. According to bank rates july 2021, emergency savings survey, once you start seeing money differently and as a tool to grow your wealth, rather than just something you use to buy things with you'll have everything that you ever want eventually owning enough cash flow investments is like having A second paycheck every month and who wouldn't like that? It's important to have an emergency fund of three to five months of your living expenses, but you should only dip into this as a last resort and not to take a spontaneous trip to the caribbean. There are a few great books that you can read that will really help you get into this mindset.

I just happen to have a couple of them on my desk. First of all, i suggest picking up rich, dad, poor, dad and then think and grow rich. Many people see saving lots of money as a safety net. I've even heard of some people saying that they like looking at number on the screen, but what they don't realize is the opportunity cost.

How many times have you been sat sitting on the sideline watching other people making money thinking when's it going to be my turn. Just think of all the people that left their money in their savings account during the last couple of years, because they were just scared to take a risk. The scary thing is that the biggest risk often turns out to be not taking one at all, as they ended up missing out on some crazy crypto and stock market profits. Currently many people say: tesla stock is overvalued and due to this, they deem the stock untouchable and they're waiting for the price to drop before they start investing.

But things can change really quickly. Between august and october 2021 tesla stock jumped from seven hundred dollars to nearly nine hundred dollars, so the cost of waiting here was 35 but mark i don't have that sort of money just lying around. Who do you think i am elon musk? Well, you didn't need to buy a full stock for seven hundred dollars. You could have just invested as much as you would have liked and bought a fraction of a share.

So if you had invested a hundred dollars, you would now have made thirty five dollars and with that you could have bought yourself a tango ice blast slushy. On top of this, the average saving account interest rate is only 0.06 percent. There is no opportunity here. The banks take your money and invest and loan it out at far greater rates than this money is for emergencies enjoyment and in and therefore you don't need everything on hand.

24. 7.. Now, i'm not going to pretend that i don't save money because of course i do in fact to tell the truth. I've always saved more money than most investors.

However, the idea of saving all your money in a bank account is boomer thinking. It might have worked back in my day, but now things are changing and we need to adapt. The truth is money is a tool not to be hoarded but to be used. In my opinion, you shouldn't keep all your money on the sidelines as it's much better to let it go out and play more often than not.

The worst that will happen is you'll, be back where you started. Remember you miss a hundred percent of the shots that you don't take, so i'm going to leave the next video right up there, but don't click on it just yet make sure to subscribe. If you want to grow your wealth and don't forget to pick up your free stocks and bitcoins in the links below okay i'll see you over there.