If you’re sitting on piles of cash or stale savings accounts, I’ve got bad news for you – you’re not saving money, you’re losing money. Today you’re going to learn why saving money may actually be hurting your bottom line, and three strategies you can use instead.
You’re going to learn about the best ways to invest your cash, whether you’re looking to save for retirement or just want a short-term option. If you’re ready to invest your cash like a pro, just click play on this episode of Investing in Real Estate!
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If you’re parking your money in a traditional savings account, this is a horrible strategy. Let me explain. According to Bankrate’s recent survey, the national average yield for savings accounts is .61 percent APY. Many banks are offering rates as low as 0.1%, which is basically ZERO!
In fact, storing money in a traditional savings account actually costs you money. Here’s why: the annual inflation rate in the US was 3.4% in 2023 and 2.9% in 2024. This means your dollars are losing their value every day. The low interest rate your bank is offering isn’t keeping up with inflation at all.
So now that you understand why saving money is a losing strategy, let’s talk about a few things you can do instead.
- Fund a retirement plan like a self-directed IRA. If you’ve been putting your money aside for later in life, consider setting up a retirement account. There are a handful of retirement plans that allow you control, flexibility, and the ability to create double digit returns – the self-directed IRA is one of these. I have an entire playlist that explains the intricacies of the 401k, the pros and cons, and how to buy real estate inside your retirement plan. Be sure to check the description box below for more info on the self-directed IRA. And if you have specific questions or need help figuring out if this strategy is a fit for you, my team of self-directed IRA experts would be happy to answer your questions and help you set up your account. You can set up a free call, with no strings attached, at morrisinvest.com. Once you’ve got your account established, you can buy inflation proof assets like rental properties (or whatever else you want to invest in)! And when you do this, your earning potential is totally in your hands. It’s no contest when you compare this type of investment to your .1% savings account.
- Maybe you’re not looking to put those funds away until retirement. Here’s a short-term option instead: invest in real estate notes. Parking your funds in a real estate note is a major upgrade if you’re used to traditional savings accounts. Real estate notes can provide returns in the 7.5-9 range, which will help you get ahead. My favorite way to use real estate notes is through a company called Connect Invest. You can get started with as little as $500, and you can choose the note length, anywhere from 6-24 months. Sign up using my link at morrisinvest.com/connect, and you’ll receive $50 when you invest $500 or more.
- Buy a rental property. If you have enough money saved up for a down payment, consider what that money could do for you if you were to invest in real estate. Becoming a real estate investor gives you the benefits of appreciation, cash flow, tax benefits, and so much more.
These are just a few ways you could put your money to work instead of letting it rot in a tired old savings account. I hope this episode gave you some ideas of how to make your money work for you.
Our financial system is full of outdated accounts and practices that aren’t helping people reach their goals – and a traditional savings account is one of them. I love helping people build their financial education, start seeing some of the holes in traditional financial advice, and start making more empowered choices.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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