Most people usually save for consumption rather than investment (for example, they save to buy a new computer, a car, go on vacation, etc.).

They believe in cash payments and are afraid of credit cards and debt. They like the "security" of putting money in the bank.

Even in today's economy, where savings bring negative returns (after inflation and taxes), they are reluctant to take risks.

Little do they know that the dollar has lost 90% of its value since 1950 and is still falling year after year at a rate higher than bank interest rates.

They often own whole life insurance policies because they like the security.

People at this level often waste their most valuable asset, time, trying to save a penny.

They spend hours clipping coupons from newspapers and then wait in long lines at the supermarket to find the coupons awkwardly.

If instead of trying to save money, they spent the time learning how to invest, if they had invested $10,000 in the John Templeton Fund in 1954 and forgotten about it, it would have been worth $240 in 1994

Ten thousand U.S. dollars.

Or if they had invested $10,000 in George Soros' Quantum Fund in 1969, it would have been worth $22.1 million in 1994.

At the same time, their strong need for security is also driven by fear, which forces them to invest their savings in low-return investments, such as bank certificates of deposit projects.

You'll often hear these people say, "A penny saved is a penny earned," or "I save for the kids."

The truth is that some deep-seated insecurity dominates them and their lives.

As a result, they often "give less" to themselves and the people they are saving money for, making them almost the exact opposite of Level 1 investors.

Saving was a good idea in the agricultural era, but when we entered the industrial era, saving was no longer a wise choice.

From the time the U.S. government abandoned the gold standard and began printing paper money like crazy, causing us to experience inflation, simple savings have become a very poor investment choice.

In times of inflation, those who save end up losing money.

Of course, if we enter a period of negative inflation, they will be the big winners... but only if the paper money printed still has value.

Some savings is a good thing, and it is recommended that you keep cash in the bank that can cover living expenses for six months to a year.

But after that, there are far better and safer investment vehicles than bank savings.

Putting money in the bank and charging 5% interest while letting others earn 15% or more is not a wise investment strategy in any way.

However, if you are unwilling to learn investing and are afraid of financial risks, then savings are a better choice than other investments.

If you keep your money in the bank, you don't have to think too hard...and your banker will treat you right.

Why don't they do this? You save $1, and as a result of the derived deposit, the bank can actually lend out $10 to $20 and charge up to 19% interest, which in turn pays you less than 5% interest.

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