Right now, the US Federal Reserve is doing its best to fight the rising cost of living. As a result, banks have hiked interest rates to encourage consumers to deposit cash. With this in mind, are savings accounts worth it in 2023?
According to recent reports from Bloomberg, many financial institutions have increased their interest rates to nearly 4% on savings accounts.
This is a far cry from the old rates which could easily be rounded down to zero…
But before you are tempted to save your way to wealth, let’s look at how these accounts actually work. Then, you can decide for yourself if they are worth it — in 2023 or any other time…
The TRUTH About Savings Accounts
Regardless of government mandates or higher interest rates, there will always be a problem with saving money…
DEPRECIATION.
The truth of the matter is that inflation isn’t going to stop anytime soon. Any capital you store in a bank just won’t be as valuable when you withdraw it in your golden years.
This is a difficult reality that many seniors face when they retire….
They worked hard their whole lives…
They were disciplined with their money…
And in the end, it’s not enough to take care of them and their families.
From this, you can conclude that savings are NOT worth it and don’t use them….
BUT, NOT SO FAST!
There is a way that you can take advantage of the opportunity the increased rates present…
How to Make Your Savings Accounts Worth It
I know what you’re thinking…
“GRANT, YOU JUST SAID YOU CAN’T SAVE TO CREATE WEALTH.”
I stand by that.
But there is something you can do, and it’s what the 1% do…
EARN, STORE, AND MULTIPLY.
So, put your money in the bank — for now. Then, take advantage of the improved interests until you have enough to invest it in a cash-flowing asset.
Ultimately, that is how you make savings accounts worth it — by NOT saving forever.
Be Great and Don’t Let Your Cash Depreciate,
Grant Cardone
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