In today’s turbulent economy, many are losing trust in the financial system and it’s left them wondering where to put money instead of banks. If that’s you, this article is worth reading … because to me, it’s a genuine concern if you have wealth you want to keep safe from ravaging governments.
Crazy events are happening everywhere…
Inflation is quickly moving towards hyper-inflation, more money is being printed by western governments causing the dollar to lose its value, and more recently two established banks – Silicon Valley and Signature Bank – collapsed (being the 2nd and 3rd biggest crash since the GFC).
According to a Fortune article and research, since 2020, public trust in government has fallen anywhere between 12 to 47 percentage points in various countries including Germany, South Korea, the UK, the United States, and more.
All of which was triggered by the “deadly” virus.
Before I get carried away on this subject (and the absurdity it caused) … people are looking for answers for their money, future and children. Namely, they want more financial stability and income that’s INDEPENDENT from governments and banks.
In this article, we’re going to share with you 5 places to put money instead of banks so you can start moving to a more sovereign life that’s lived on your terms.
However, this is NOT FINANCIAL ADVICE. It’s only my personal opinion based on my own research and what I’m actively doing. This article is for information and information only. If you want personal advice, you’ll need to see a licensed professional in this space.
(Read the full disclaimer at the bottom).
Let’s get back to the article!
One is a Dangerous Number
When it comes to investing, the phrase “don’t put all your eggs in one basket” is a common refrain. This is because investing in only one asset or stock can be risky and potentially disastrous. Think about it … if you put 100% of your wealth in any investment sector, it means if that one thing crashes your entire portfolio goes down with it too.
In simple terms, if you the one you lose the many…
Having all your eggs in one basket exposes the investor to a high level of volatility and market risk. If the asset or stock performs poorly, the investor can experience significant losses.
For example, if the bulk of your money was in property and the housing market crashed, you’d be in hot water. If you invested a lot into a private deal that promised big returns and it turned out to be a scam, again you’d be screwed.
It’s no different when it comes to banks. With the financial system crumbling before our eyes, some argue it’s dangerous to have all your money stored in the bank. I personally agree with this which is why I’ve diversified most of my assets.
Not only does it store and protect my wealth but it also sets me up to potentially have more opportunity if one market goes down while another goes up.
For example, if the stock market crashes but gold soars, the damage isn’t as severe because it helps to create a balancing effect.
This principle not only applies to investing but everywhere if you’re looking for a result.
One business partner, one health advisor, one friend and I like to joke one husband or wife!
That said, let’s explore where to put money instead of banks to protect your wealth from governments…
5 Places to Put Money Instead of Banks
So … where to put money instead of banks? In no particular order, let’s take a look at some of the options. Some which have stood the test of time, some that’s relatively new with potential, and others that are well-known alternatives.
1. Precious Metals
There are many benefits to owning precious metals which we discuss in more detail in a previous blog, 10 benefits to owning gold as an investor.
Investing in precious metals such as gold, silver, copper and even platinum can be a good alternative to traditional banking. Unlike fiat currency, precious metals have intrinsic value that’s not dependent on government policies or the stability of the banking system.
They’re historically known to serve as a store of value plus a hedge against inflation and economic uncertainty. (However, past performances aren’t indicative of future performances).
Additionally, owning physical precious metals can provide a level of control and privacy over one’s assets that’s a lot harder with traditional banking. Finally, they can be a valuable addition to a diversified portfolio for those looking for alternative investment options.
Investing in property can be a good place to put money instead of banks, as it provides the potential for long-term capital growth and the opportunity to generate a passive income through rental yields.
Unlike banks, property investments can offer a tangible asset that can potentially appreciate in value over time, which may provide a more reliable return on investment in the long run.
Additionally, property investments can act as a hedge against inflation, as rents and property values tend to rise with inflation. However, it’s important to remember that investing in property also comes with risks, including the possibility of property market fluctuations and the costs of maintenance and management.
Plus with many predicting of a recession and housing crisis, this is another factor you need to consider before taking any action.
Therefore, it’s essential to conduct thorough research and seek professional advice before investing in property.
3. Physical Cash on Hand
It’s cliché in a doomsday scenario … but as an emergency back-up, having physical cash hidden away somewhere (under your mattress, in a safety deposit box, your drawer, etc.) can be very useful for liquidity.
Like the old saying, “cash is king”, keeping physical cash can be handy when you least expect it. In situations where banks are not accessible or trustworthy, physical cash can serve as a reliable and universally accepted form of payment.
Suggested: 6 reasons why we still need cash
We’ve seen banks freeze accounts (even collapse) where investors were queued up in MASSIVE lines to try and withdraw their money. Having physical cash prevents you from going through this unlikely scenario.
Finally, physical cash can be a good option to put money instead of banks because it’s offline and gives you a greater level of privacy. With a world moving digital, your transactions are easily tracked, your bank potentially could experience a cyber-attack, bank systems could fail, or something else.
We’re huge fans of physical cash.
This is an area that comes with many risks if you don’t know what you’re doing. It’s an emerging technology that hasn’t stood the test of time just yet and is extremely volatile compared to traditional markets and banking.
Depending on your risk appetite, cryptocurrencies is an option one may consider putting their money instead of banks, as it presents an opportunity to pave the way for the future in terms of a digital currency.
Although it’s very questionable whether it’s here to stay for the long term, there’s hype and potential around the space that makes people believe the returns could be significant if positioned correctly.
But once again, I strongly emphasise the HUGE risk associated with this if you don’t understand what you’re doing. So many investors have lost thousands or millions in scams as it’s well known the be prone to those.
If you’re wanting to learn more about cryptocurrencies and how to get started, join as a free member in our community and watch our beginners course on getting started in cryptos with certified financial planner, Connor Marshall.
5. Private Businesses
The final place we’re sharing where to put money instead of banks is in private businesses. More specifically, essential (NOT speculative) services that have proven to stand the test of time when sh*t hits the fan.
Businesses such as healthcare, education, manufacturing, agriculture, food services and utilities provides a stable source of income, as these services are always in demand regardless of economic conditions.
If you know what you’re doing, they can potentially perform better in tougher conditions than steady, and provide significant returns.
In our Global Wealth Mastery Program with our elite investors, we strongly focus on this area with venture capitalist, Stephen Petith.
When looking into businesses to invest in, it’s important to research into the trends of the world, where things are moving to, what has historically performed well in other notable recessions (or depressions), and make your own informed decision. (Alternatively, you can see a licensed professional).
Finally, while investing in essential services and private businesses may come with higher risks compared to traditional bank deposits, the potential rewards and benefits may outweigh the risks for those who are willing to do their due diligence and make informed investment decisions.
There you have it … 5 places to put money instead of banks. In no particular order, they are:
1. Precious metals
3. Physical cash of hand
5. Private businesses
If you’re keen to learn how you can apply this into action, and improve your knowledge around finances so you can safely invest to potentially increase your income, enquire with our team and see how we can start working together.
Alternatively, if you’re new and just looking for a place to start, become a free member of our community and get access to world-class training around money, legal tax minimisation, asset protection, and more!
GWC Advice is Limited to Educational Advice.
The information provided by Global Wealth Club is provided for educational purposes only. It should not be relied upon as financial product, tax, asset protection or legal advice. None of the information provided by Global Wealth Club takes into account your personal objectives, financial situation or needs. You must make your own decision how to proceed.
If you want financial product advice that takes account of your particular objectives, financial situation or needs, please seek advice from an Australian Financial Services licensee before making any financial decision.
If you want tax, asset protection or legal advice that takes account of your particular objectives, financial situation or needs, please seek advice from a licensed professional in the area such as an accountant, lawyer or similar professional.