73. This "savings" mindset may be what is keeping you poor

 

You decided to save 10,000, and just like before, you deposited the money to your savings account

the question now is, did you "save" or "invest"?

the decision to save money and where you decided to keep it are two different issues

if you retained "possession", its your savings

as soon as you transfer "possession", you are effectively entrusting that money to another party, in effect, you are already investing, so the act of depositing it to your savings account means you are no longer in possession so there now exist a possibility, albeit minimal of the chance of not being able to get in back

the main benefit proposition of a savings account - "liquidity" (the ability to withdraw it anytime, 24/7) creates an illusion of possession

understanding this difference would be vital in wealth building  

first is that once you realized that every time you make a deposit - you are already in fact investing, this would changed your expectations in terms of the returns that you are getting  

sure we need the liquidity, but keeping most of our savings in a savings account is counter productive, as the returns we are getting is not enough to offset the eroding effects of inflation

the "advice" is just to keep an amount equal to three to six months of your average monthly expenses and invests the excess in other forms of investments - investments that have the potential of beating inflation

all the best my friends!

#acgadvice