Why Keeping Too Much Money in Your Bank Account is Robbing You
How Our $100K Savings Strategy Cost Us $63,683—Don’t Make the Same Mistake
Let’s be honest—having a big bank balance feels good.
You hold your head a little higher, stand a little taller, and stress a little less. Seeing that money sitting there is comforting. Safe. Secure.
But here’s the problem: The longer it sits, the more it robs you.
If too much of your money sits in a savings account, you’re losing out in two major ways—and by the time you realize it, the damage is done.
Take me, for example. My wife and I potentially missed out on $63,683.60 by saving our money. Here’s what happened and what you can learn from it.
Quick Story
When my wife and I married, we spent almost all our money on the wedding and buying our first home. After that, our goal was simple:
Stick to a strict budget
Save as much money as possible
Buy a second home—closer to our parents—within 3 to 5 years
I won’t lie to you—sometimes, it was miserable, especially for my wife (a spender). But we stuck to the script and saved $100,000 by our second year of marriage. After months of sacrifice, it felt like we’d reached the top of a mountain—finally, we could breathe again.
Then, it hit me—I had made a mistake.
The Problem
Every dollar was kept in a high-yield savings account earning a 4% interest rate. I was so focused on the goal that it didn’t seem like a problem then, but we later found how much it robbed us.
Let’s use recent years (since I don’t have all past data) to demonstrate our potential loss (2022 through 2025):
Savings Account (4% annual APY) → 12.49% cumulative return
Investment Account (~20.75% yearly return) → 76.17% cumulative return
Here’s the math on that (if we consider a $100,000 initial investment):
Oh, and don’t forget that inflation also eats away at the savings account.
Here’s the Point
If you want to reach your wealth goals faster, saving money is not enough! You need to find a way to make your money work for you.
“Saving is a great habit, but without investing and smart risk-taking, it never leads to great wealth.”
- Robert Kiyosaki
The Solution
Don’t do what I did! Instead:
Open a Brokerage Account: Follow this step-by-step guide [Click here]
Diversify Your Investments: Diversify your investments using large- and mega-cap ETFs as a safety measure. Use my preferred list [Click here]
Be Consistent: No matter how much money you start with, invest regularly. Over time, compound growth will do the heavy lifting for you.
Pro tip: Keep saving, but use your savings for things like emergency funds, short-term goals, and unexpected life changes. Not for long-term wealth building.
A Word of Encouragement
Saving money is smart, but keeping too much is costly.
So, this week, check your balances. If you have more cash sitting in savings than you need, it’s a good time to put it to work.
Want an easier way to invest and get regular payments from the stock market? In tomorrow’s PRO newsletter, I’ll explain what you need to know to earn a passive income through dividend investing.
Until then,
-Isaiah from Earn Out Loud