Taking Control of Your Finances Isn’t a Threat to the Economy
Every once in a while, we come across an article that has us scratching our heads. That’s exactly what happened when we read an article published on CNN Business titled, “New threat to the economy: Americans are saving like it’s the 1980s.” The article highlights two ways people’s financial habits have changed since the coronavirus pandemic began: “hoarding” cash and shrinking credit card debt.
Now, there’s no doubt that we’re living in a time of uncertainty and fear — not only about our health and safety but also our financial security. Many Americans are facing financial hardship because they are out of work due to COVID-19. With that in mind, how could building up a cash reserve and getting out of debt ever be a bad thing? The truth is, it’s not. And if it’s not a threat to the economy, as this article suggests, who is it a threat to?
Who’s Really At Risk?
Most people would agree that getting out of debt and growing your savings is a great thing, right? To fully understand who is being threatened by these new financial habits, you have to consider who has the most to lose. The answer is pretty simple when you stop to think about it: those controlling the banking functions.
To be clear, taking control of your finances isn’t a threat to the economy — it’s a threat to banking institutions and financial corporations. They’re the ones making money off of your debt, so when you take steps to reduce it, it impacts their bottom line. They don’t want you to know that there are better ways to manage your money and make it work for you.
Letting Go of Conditioned Thinking
The financial industry is all too happy to have us fall into the trap of conditioned thinking. They want us to believe that traditional financial products are the only solution. We need to secure financing through a bank to buy a home or car; we need a line of credit for fast access to cash; an investment account is the best way to save for retirement — the list goes on and on.
One of the most dangerous things about conditioned thinking is that we have very little control over our finances. Most people don’t know that the banking function can and should be done at a “you and me” level, which allows us to have complete control over our money. Those with control of their money have less fear and uncertainty than those who rely on traditional banking functions.
While we disagree with the idea that saving money and reducing credit card debt is a threat to the economy, there is one thing we do agree with: we need to put our money to work for the economy to flourish. How you put it to work matters.
Money Has to Flow
For money to be valuable, it has to flow. When it remains stagnant, it’s subjected to the three wealth destroyers; taxes, fees, and inflation. Keeping your money in motion protects it while giving you the means to manage and grow your wealth properly. The key is to employ smart strategies that align with your goals.
Sage Wealth Strategy empowers people to take control of their finances by teaching them new processes for understanding and managing money. With better insight into how to make their money work for them, they can make informed decisions as they build a warehouse of wealth that has a multi-generational impact.
Interested in learning more about this topic? Wade takes a closer look at what it really means for Americans to save more money and reduce credit card debt in a recent episode of his podcast. Click here to tune in!