The Surest Way to Lose Money

ABOUT THIS EPISODE

Is it possible to have too much money in the bank? Absolutely! Financial expert, John Browning, shares how easy it is too lose money that is in the bank. Leanv mor. when you Connect with John by texting "LIFE" to 21000 or GuardianRockWealth.com.

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert in number one Amazon bestselling author, John Browning Jones the founder of Guardian rock wealth and serves clients across the United States. John's the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy mailed right to your door. I'm Michael The lawn, your host for the next few minutes as we chat with financial expert and business owner John Browning. Well, good afternoon, John Browning. How are you today, sir? I am doing great. How about your job? Unbelievable. It is just tremendous. Always love talking with you. Last week we had a great conversation around three tax tips to fund your future, which really opened my mind. I expanded some things. I've...

...got young girls who are babysitting and things, and now you've got me thinking about how do I get them a real job, like a chick flay or something, so they can actually we can get a roth started for them at a really young age. So if you miss that episode, you need to go back and listen to it, because John gave us some great, great hips that are just worthy of noodling on and then hopefully taking action on them. But today, John Wha, you know, you're an investment guy. You help people grow their money long term and protect their money and in retire and everything. So one of the interesting things. You know, I've talked about this a bit, but there's there's a there's not always a sure way to grow your money because there are some risk and different things right, but there is there's one sure way to lose money, and that's what we want to talk about today. Is One of the surest ways to lose money. And what? What have you learned in your experience about how people lose money? Well, there are there are some. I want to start out by...

...saying number one, this is not investment personal investment advice, but we always put that in there and it's on all kinds of disclosures. However, what we will what I will tell you, is that money in the bank, while there are really good reasons to keep some money in the bank and even maybe some cash, and hold their very good reasons for that. You can ask anyone who has been through a disaster, a tornado or hurricane or anything like that. It can be a really good idea to have some, just not too much, cash literally in your house, and it can also be a good idea to have some, not too much, in the bank. But one of the surest ways to lose money is to have two munch money in the back. And there's use me from trying now. Now, that's okay, but what happened? And in the bank right now you're getting less than one percent. Yeah, on interest rate and in plation. During two...

...thousand and twenty one ran five percent higher and higher, and in many cases, like on things that we use every day. So we're definitely affected by it. Like meets, home rent, that type of thing, the things that we all use, those were up double digits. So that dollar in the bank that you earned, if you kept it in the bank all yearlong, maybe it's worth a dollar and two cents. Yeah, but your expenses went up to a dollar and five or six cents. Yeah. So now you multiply that by whatever you have in the bank, you start to realize that you are losing money by holding money in a bank account or a checking account. So I'm careful to make sure that people know that you do need an emergency fund. You do need some be very careful about how much that...

...is, and it differs from person to person. Everybody out there has something different. Some say three months expenses, some say six, some say a year. Yeah, personally I would say a year is way too much to hold in an animate account. But maybe there's a reason for that. And again this is why this is not personal investment here. But there's there's some really great graphs out there. You can, guys can google them, but it'll show you the value of a dollar since a nineteen twenty, and I'll tell you I like. I like you take a hundred dollars in nineteen twenty and what it's worth today. It's worth less than one dollar. It's like worth eighty six cents. It's that's how much the dollar has depreciated over that amount of time. Yeah, well, and it's interesting because it's not like in days gone by people would have their money like in a CD and it's hard to get money out of a CD right. So having money in the around the house or in a bank feels better because I know I can go...

...to the bank and get the money out, but there is a limit there and and if you have your money there, if you have other money's in a mutual fun I'm speaking out of turn here because I don't even know, but a mutual fun it takes a little bit longer. It might take three or four days to get my money into my hands versus a bank and going to get it today. So there might be a laddering effect. To say I you know, I've got some money at a bank right now. I've got other moneys that it'll take three days get to. I've got other moneys that takes a month to get to. But the whole process is you're losing money because of the the economy that we're in right now, and that's the real issues. You've got to make sure money in the bank. That's good. Maybe it depends on what your goals and values and desires and what that money's for. Right if you're going to spend it in the next two months, well, yeah, that's okay, but if it's for your retirement, there might be a better place to put it is I mean that's kind of what we're trying to get to. Is that right? That's right, and what I find that is is so I don't know. That's sad is the...

...right word, or disconcerting is the right word, is that the older we are, the more we believe that money in the bank is the way to be because historically, like you said, he kind of you just the bank was where you put your money and now, the way that the marketplace has progressed, it likely it is not the best place for most of most of your assets. Yeah, which is interesting because we we it's incorrect me if I'm wrong here, John, but it seems to me that we tend to think about putting in the putting money in the bank is safe, but in reality, what we've just heard, because of the economy we're in, actually putting money in the bank isn't really a safe place because you're going to lose money unless you have a really defined purpose for that money. It's interesting to...

...flip it. A bank may not be the safest place to hold money anymore because it's going to get robbed, not by robbers but by inflation or some other things that it's just you've got my mind rolling in a weird spot. Is that even close? That's exactly right. One of the things that I did when I work on Wall Street was I had to manage the risk of a large pool of money that the firm had. Okay, and you started to learn how to think about things a little bit differently than most people think about things, because when you're trying to all set one risk with with another risk, you really have to think a little little backwards, you know, a little bit from the side, a little bit different perspective, and and what you just described is thinking about things from a very different perspective than most people do, because most people are really good plumbers, teachers, lawyers, whatever it is that their profession is, but it's not what they do.

...is now what they think about all the time. It's what I think about all the time. Yeah, I don't. You know, it's just backwards, but I think that's how we need to think and that's why we need people like you in our lives to just talk about these things and listen to podcast like this. Go back and listen to this one again and go, you know, listen to this when they go back in two episodes and listen to starting a role for your kids and think of how backwards that is from how we've always done it. That's a different philosophy. That could really help set your kids up for life, but it's backwards, stinky. And what you're talking about here is backwards thinking that really helps you go forward, which I love. So wow, I gotta listen to that back again. That's right. Well, I appreciate the the lesson on the surest way to lose money, and that's that's hoarding cash in the bank, not it's okay to have some money in the bag, but don't hoard it there. There are...

...other places to put your money to make it work for you and provide the to help you build a life, not just a port folio, which is the title of John's Number One Amazon best selling book that you can get a copy of by texting the Word Lifelife to twenty one tho, or reaching out to John at Guardian Rock Wellcom and having a conversation and see how John can help you not lose money but grow your money for a great retirement so that you can build the life that you want. Very fascinating, John. I love this backwards thinking that you have good job. All right, we'll talk to you next week. All right, we'll be money really is a big part of our lives, and John Browning can help you and your family learn how to keep money in the proper perspective. It's important, but it's only a tool that can help you build the life that you want. If you like, John Emeil you a free copy of his book build a life, not a portfolio. Go to John's website, Guardian Rock wealthcom, and click the contact to US link and send your request. John Will Mell a copy...

...of his book right to your door absolutely free. Thanks for listening to building your life podcast with John Browning. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it's released. Have a terrific day. Nothing in this podcast should be construed as personal investment advice, and past performance is no guarantee of future results. Investing is not appropriate for everyone. There is a risk of loss associated with investing in the markets. No representation or implication is being made that using any methodology or system will generate profits or insure freedom from losses. Please remember that investing carries risk. Guardian Rock Wealth LLC and it's affiliates are fiduciary investment advisors. Please consult with US or another experienced qualified investment advisor before making any investment decisions and or trying to implement any of the strategies and tactics we may discuss in any of our publications or podcasts.

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