Should You Keep Saving Money? Lessons From The Rich

In our culture it is considered a taboo to talk about money, when was the last time you asked a complete stranger how much money they earn? It's just something you don't do.

This phenomenon is odd but understandable. The problem is that we miss out on so much valuable information because of this universal restriction of speech.

It's also a big factor (big, not only) in why the poor and middle class are where they are.

Because you know who doesn’t mind talking about money? Rich people.

You’re probably thinking ‘Well of course, if I was a millionaire I’d talk about it 24/7’. But there’s more to it than that.

You can be rich and broke at the same time, just like you can be poor but have a lot of money.

How? Because being rich is purely a mindset.

That’s why billionaires that go bankrupt always make back their money. They are still rich, just temporarily out of money.

And the same reason that 70% of lottery winners go bankrupt within 5 years. Money doesn’t change your mindset, it just magnifies it.

So, how do we become 'rich'? Well, most of it is unlearning what we're taught in school and by friends and family, which takes time.

Every conversation about money you've had or heard has seeped into your subconscious mind. As kids our brain was a sponge that took in absolutely everything, while thinking that our parents knew everything.

Every debate, argument, tip and conversation about money has shaped your habits today.

And unless you were surrounded by rich people growing up, you also have a middle class or poor mindset.

That’s one of our aims at Gioology, to slowly guide you into thinking like the rich to become rich - and ultimately 'financially free'.

And a perfect example of a poor lesson we were always taught is to save money.

This might shatter your whole world, but it’s completely wrong. Here’s why…

Let’s use the example of £10k.

A 'poor' person gets gifted £10k, and they’ll spend £15k and go into debt.

A 'lower middle-class 'person would spend it all, maybe on a nice holiday and some designer clothes.

A 'middle-class' person would spend half and save half in a normal current account.

An 'upper middle-class' person would put it in shares, premium bonds or some other investment.

A rich person would take the whole £10k and use it to try and make $20k. They might go broke, they might make triple that, but they would be determined to use it to make more money.

That’s how rich people think. And that’s how you should think.

You are NEVER wasting money if you are using it to make more money. Most new income that isn’t spent on living should be put into making more, not just put in a savings account where it gathers dust at 2% interest (Max!).

Not only are interest rates at an all time low, but with inflation your money will be worth LESS than when you put it in. This isn’t a good ROI.

Obviously there are exceptions to this, for example:

• If your goal isn't to be 'financially free' or own your own business

• When saving for a big payment (although you should question if it's necessary, and still be putting some money away to earn more)

• Investing some money into long-term index funds (how much is determined by your stage in life and risk aversion. For example, a 60 year old getting ready for retirement is going to be less focussed on making new money and more on keeping what he has)

The only other vital point I would make is that everyone should have an emergency account. This should be about 6-12 months of living costs, in case things go wrong (or I don’t know, a global pandemic hits us).

But other than that, saving money is for losers.