Is it even possible to save money?

Coaches who teach goal setting tell you to ask yourself – “Why do I want to achieve this goal?” Without the Why, it’s hard to find the Who and the How. When I ask people in the real estate investing space why they get into this, a common response is “To Build Wealth.” And why do we want to do that? I think it’s because without wealth we lack a more important thing: Time.

I don’t know if anyone ever actually stuffed money in their mattress but storing it at a bank today is about the same thing. I went to open a savings account for my teenage daughter and with a straight face, the banker told me that the annual percentage yield is 0.02%. Expressed as a fraction it’s diddly/squat.

So let’s say I decided to open that savings account anyway because I had literally nothing else to do. What would happen to that money? Inflation would slowly eat it. We know the buying power of money decreases over time. Rather than store your money at a bank to be used as a food source for inflation, it’s better to invest it. For some people who have never invested in real estate it’s a big hurdle. There is a lot to know, which is why a forum like Bigger Pockets is so important.

The best thing to do if you are facing a hurdle is to network and consult with people who have already done what you want to do. This is investing in yourself.