Rich People Don’t Keep Money in a Bank Account, You Shouldn’t Either
Wealthy people are very careful to make sure their money is put to work earning more money for them, and they never keep their money in a bank account. Keeping money in a bank account feels safe, you can log in to your bank and expect to know what the amount will be. But it’s also losing your buying power.
This article is going to convince you why you should be investing instead of putting money in a bank, even a high-yield interest savings account.
Savings Accounts
For this example let’s say that you put $50,000 in a high-yield interest savings account at the beginning of 2018, and it earned an average of 2 percent interest. At the beginning of 2019 you would have an extra $1,000. However, once you factor in inflation and taxes, your money might actually be losing buying power. That interest you earned is counted as income, adding to your total income amount when you’re doing your taxes. Even if you make under $100,000 a year you still could have to pay nearly a quarter of your interest income back to the government in taxes.
