In the times we live in today many people are looking for alternative ways to save their money. As inflation and debt levels continue to rise while wages remain stagnant, it becomes increasingly difficult for people to grow their savings.

In the book, “The Richest Man in Babylon”, Arkad was widely known for his great wealth. The story suggests that he had a working theory of, “Apart from anything you earn, it’s yours to keep. It shouldn’t be less than a tenth, no matter how little you earn…pay yourself first.”

Unfortunately, most of society has strayed from this thinking.

The fact is that Canadians are not saving like they used to and collectively have record levels of debt. The average household savings rate in Canada fell from about 20 percent in the 1980s to 5.8 percent in the fourth quarter of 2016.[i] Many people think they can’t save because after “all their bills” are paid, they don’t have much left. However, understand that in most cases, if you try to save after paying all your bills, this strategy may be useless. Instead, get in the habit of saving first or consider paying yourself first. Once you’ve developed this habit, you can look at which vehicle you want to save your money on.

Generally speaking, when people DO consider saving many times the traditional approach is taken; Open a bank savings account and put as much cash into it as possible. Sit on it like a goose sits on its eggs and wait for your savings to hatch. However, the sad reality for most is to take a future cash withdrawal only to be able to buy less with your savings because inflation has consumed you. And you will always be on the losing end of a bank savings account because interest rates are no higher than inflation.

Another option that many consider is putting money into the stock market, however, one should not look at the stock market as a savings vehicle because the stock market has had a history of declines dating back as far as 1929.[ii]

Look up the definition of saving in Webster’s dictionary and see “preservation from danger or destruction,” while the definition of investment reads “to pledge (money) for a financial return.” Neither method is good or bad, but you must understand which one you are trying to do.

Finally, during my research, I have found throughout history that when people lose faith in their national currency, the banking system that controls it, and their governments, many run back to gold. Gold is the oldest form of money and has proven to be a safe haven for centuries. Gold cannot be printed, degraded, or inflated. Simply put, gold is financial insurance.

To better understand this concept, it is important to start investing in your own education. Financial education should be taught in our school system, however sadly it is not. If you’re worried about where to hide your cash so you can protect your money from danger and destruction, you’ll need to take those matters into your own hands. And also for good reason, your savings must be in your hands because your economy must be the most important economy for you!

Learn what the banks don’t want you to know and protect your money from danger and destruction.

[i] http://www.cbc.ca/news/business/saving-tips-1.4131592

[ii] https://en.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets