Grant Cardone Comes Out Swinging Against Savings Accounts: 'You've Been Burning Your Money'

You're guaranteed to lose money if you keep it in the bank. That's what Grant Cardone believes, and he shared why in a recent TikTok video. The real estate mogul proceeded to set money on fire and demonstrate that your money endures the same fate if you keep it in the bank.

"You've been burning your money," Cardone said when referring to people who stash money in their savings accounts.

Instead of saving money, Cardone advocated for investing it into assets. 

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Stop Working For The Bank

Cardone said in the video that his parents and grandparents worked for the bank. They didn't work for the bank officially, but they stored their money in savings accounts. Most of them had hard labor jobs and saved money.

However, the banks are free to use your money to grow their money. For instance, when someone approaches a bank for a loan, they can tap into customers' deposits to provide the capital. Then, the bank earns interest on your money. 

When you put money in the bank, you're working hard to make the financial institutions rich, but it doesn't translate into you getting richer. The interest you receive from saving money won't keep up with inflation. You're essentially losing purchasing power each year your money stays in a savings account.

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Trading Time For Money

Keeping your money in the bank doesn't result in long-term wealth. It puts you in a bad pattern of trading time for money, which doesn't work well if you have to retire and don't have much cash flow.

Investing your money can help you reach your long-term financial goals sooner. However, those investments can also provide cash flow. Just as you can earn interest from a high-yield savings account, you can receive dividends and rental income if you invest in assets that produce cash flow.

However, assets can gain value over time and outperform inflation. Meanwhile, the money you keep in your bank account is almost guaranteed to underperform inflation in the long run. Real estate investors can also raise rent over time, and dividend-paying corporations tend to raise their dividends every year.

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Investing Money in Assets

Cardone points out that the banks and insurance companies own the most real estate. Even though people view banks and insurers as safe havens, those financial firms are readily investing your money. The end result is that they gain ownership of more resources, but it also demonstrates that they don't want to hold on to cash.

Big banks seem to be in a rush to use your money to get ahead. That's the message Cardone shares in the TikTok video, but you can invest the money instead. Stocks and ETFs offer easier entry points, but you can also invest in real estate, Cardone's preferred asset. 

However, you shouldn't go into investments blindly. Everyone has to assess their risk tolerance and chart out their long-term financial goals before making any decisions.

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