Is Your Cash Costing You? Why "Saving" Might Be Riskier Than You Think
We've all heard the traditional advice: "Work hard, save your money, and keep it safe in a bank account." But what if this conventional wisdom is actually putting your financial future at risk? I'm here to tell you a stark reality: CASH IS TRASH.
If that sounds provocative, it's meant to be. I'm not anti-money; I'm simply against cash as a primary store of value. I'll make a compelling case for why keeping large sums in a checking or savings account is a terrible idea, and why you should instead be looking at strategic investments, particularly in real estate.
Why Cash is "Trash" (and Not Just a Little Dirty)
I highlight two major pitfalls of holding onto significant amounts of cash:
Inflation Eats Away at Your Wealth: This isn't a new concept, but its impact is profound. Inflation is the steady decrease in the purchasing power of your money over time. Let me illustrate this vividly: that $100 from 1990 is only worth about $40 today. If that same $100 had been invested at a modest 10% return, it would be worth around $2,800 today. Cash sitting idle is losing value every single day.
It's Too Liquid for Your Own Good: The accessibility of cash, while seemingly a benefit, can be a major disadvantage. I argue that readily available money in a bank account makes you more prone to impulsive spending. Think about those Costco or Target runs where you end up with a cart full of things you didn't need. This impulsivity can become habitual, leading to further financial problems. Beyond self-sabotage, excess cash also puts you at risk of theft, scams, frivolous lawsuits, and even lending to family members because of their bad habits (and let’s be honest, is it really “lending” if they never pay you back?).
The Power of Illiquidity: Why Real Estate Shines
I champion illiquid assets, especially real estate, as the superior alternative. When your money is tied up in an investment that isn't easily converted to cash, it protects you from impulsive decisions and external pressures.
Real estate, in particular, offers what I call the IDEAL benefits:
Income: Generating cash flow from rent.
Depreciation: Tax benefits from the property's decline in value (on paper).
Equity: The portion of the property you own outright, which continues to increase as your tenants pay down your mortgage.
Appreciation: The increase in the property's value over time.
Leverage: Using borrowed capital to increase potential returns.
These five benefits, when combined, create a powerful wealth-building engine that cash simply cannot compete with.
Meet Me: Your Partner in Building Wealth
You might be thinking, "Okay, real estate sounds good, but how do I get started?" This is where I come in. I emphasize that getting these IDEAL benefits requires the right deal and the right partner.
I'm not just an enthusiast; I'm a highly qualified professional:
A United States Marine: Bringing grit, work ethic, and discipline.
A Civil Engineer with a Master's from Stanford University: Ensuring I know my numbers and understand the technical aspects of properties.
Experienced Investor: Single-handedly growing my portfolio from one property to seven properties and thirteen units.
Networked: Possessing crucial relationships in the right markets to find, fund, and execute top deals.
"The Little Guy" Advantage: Unlike massive REITs or real estate funds that must constantly deploy hundreds of millions of dollars (often leading to a mix of good and bad deals), I focus on finding truly promising opportunities. I offer a personal relationship and genuinely care about understanding your financial goals and aspirations, ensuring a win-win partnership.
Ready to Build Your Future?
I'm actively looking at promising deals and encourage anyone with an interest to connect. I'm ready to meet for lunch, grab a coffee, or hop on a Zoom call to discuss if partnering on real estate deals is a good fit for you.
The future belongs to those who build it, and true wealth isn't built by simply saving money in a bank. It's built through strategic action and smart investments. Don't let your cash lose value.
If you're ready to explore how real estate can transform your financial future, reach out to me today and let's start building together!
Don’t Forget to Check Out My Toastmasters Speech!
Please be sure to check out a speech I gave on this very topic at one of our Toastmasters meetings. The video can be found on my YouTube channel (I’d greatly appreciate it if you could hit that “subscribe” button!), located here: https://www.youtube.com/watch?v=bt9fb0VxJ-Q
As always, it’s your life, your canyon, your legacy. You are in control. Let’s flow!
Disclaimer: The Flow Authority makes no promise or guarantee of any results, money, success, or lifestyle from learning real estate investing strategies. The information provided in this blog is for educational and informational purposes only and should not be considered financial, legal, or professional advice. The views expressed in this blog are those of the author and do not necessarily reflect the official policies or positions of any organization, government agency, or financial institution. Any personal experiences shared are for illustrative purposes only and may not apply to every person’s situation. This information is general, not personal. Seek specific advice from a licensed professional for legal, financial, and business decisions. There are no typical results in real estate investing; every person, property, and transaction is unique. The information shared in this blog is believed to be truthful, accurate, legal, moral, and ethical, and is subject to change.