The author of Rich Dad, Poor Dad – Robert Kiyosaki – is very blunt when it comes to leaving your money in the bank. One of the many slogans of the outspoken writer is indeed “savers are losers” when it comes to people who rely on a savings account.

Why? Because currently, inflation is at a 8% high. Even the best savings account in the market is paying a APY of 3% max. So what does that mean? It means that keeping your money in the bank will accrue very little interest, while the cost of living keeps soaring. 

Most people think that “save” and “invest” mean the same thing. However, when Kiyosaki talks about savers, he means the people who leave their money in a savings account, not those who invest it. 

While a savings account might provide an APY of a few percent at most, investing your money on the stock market can generate much better and higher returns. The only problem is that there are no guarantees when it comes to investing. Meaning there is a lot of volatility involved. 

In a recent tweet, Kiyosaki reiterated his statement saying that 25 years ago he already considered savers to be lovers in his Rich Dad, Poor Dad book. Today, with the U.S. debt being in the 100s of trillions, that sentiment remains. 

He then said that the real inflation is 16%, not 7% as announced. He believes the Federal Reserve’s rate hikes will destroy the country’s economy. And that people who keep their money in a savings account will end up on the losing end. Finally, he advises people to invest in things like gold, silver and bitcoin. 

Robert Kiyosaki is not wrong to highlight the disproportion between the interest in a savings account and the current rate of inflation. He’s also not wrong in pointing out how investing in different assets can beat inflation rates over time.

However, even if the interest on a savings account doesn’t keep up with the COL, it’s useful to have dollars saved. The trick is to keep a certain amount of money in a savings account and invest the rest in assets and commodities. 

There is no way of knowing what will happen to the economy in the next couple of years. So that uncertainty is enough of a good reason to keep some money in a savings account. Financial experts also advise creating an emergency fund with three to six months of living expenses. 

Others say it’s essential to build up a savings account with a year’s worth of living expenses in case a recession hits the country. The idea behind it is to have enough cash on hand to keep you afloat in case you face some financial crisis or end up losing your job. 

While cash may not go as far as it used to in the past, you still need it to pay for utilities and keep a roof over your head. Investing is a good idea, but you can’t pay your landlord or your credit card company using gold or cryptocurrency.

Another crucial point of having money in a savings account is that it is FDIC insured. Meaning that if the bank goes under, you still have coverage up to $250,000. 

If you have enough money in your savings account to last you a comfortable six months at least, maybe you should look into investing the rest. To help you get started, follow the link below and learn a few tips on how you can succeed in that field. With organization and a neat routine, you’ll get the hang of it in no time.