As children, parents taught us how to save as they bought us piggy banks to keep a percentage of our incomes and this habit has now become a part of us in a way that a lot of us can’t do without saving money for one thing or the other. Saving isn’t a bad idea after all, you can put your emergency fund in a savings account for days when you might need a very quick emergency money to solve an urgent and emergency situation. You must have heard about this before “A penny saved is a penny gained”, if you have heard that word, I am pretty sure you heard it as a child. 



![images - 2020-05-04T163340.690.jpeg](https://cdn.steemitimages.com/DQmReUPWV9QCJyUdoknKGqJh19beXaVokx7AfFFurJN2ynC/images%20-%202020-05-04T163340.690.jpeg)
[Credit](https://imgbin.com/png/vSbxh9F6/interest-rate-money-saving-bank-png)


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>*”Disclaimer: I am not a financial advisor and the content written on this post should not be taken as a financial, tax, investment or legal advice. This content is only for information and entertainment purposes”*
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As good as saving might look to you as an individual, there are a few reasons why I do not encourage savings in the long run. The reasons why I do not support savings at the long run is 
* Inflation
* Taxed Interest

### Inflation
This is one thing that is inevitable in a country, in fact the Central bank of any country works together with the government to make sure there is always inflation. Inflation affects the purchasing power of any currency. With inflation, if a crate of egg cost $1.50 6 years ago, it means the crate of egg might now cost $4.20. Inflation is generally determined by CPI (Consumer price index). If the CPI of a country is at 2% and the interest from bank is at 1%, that means that the money in the bank isn’t worth its value the previous year and has lost its purchasing power.


![images - 2020-05-04T163906.301.jpeg](https://cdn.steemitimages.com/DQmYmgz6mcHHsDQvQm92ymPnJvmfN7Dni5cfUvnHWMWL3nW/images%20-%202020-05-04T163906.301.jpeg)
[Credit](https://www.investopedia.com/terms/i/inflation.asp)



### Taxed Interest
One major way for the government to make money is by taxing and the government taxes everything and anything yielding interest from saving, checking account, money, market or business investment, the government taxes every of these things at a specified interest rate. The government tends to reduce percentages for taxes based on impact to the community and that is why people always say the rich pay less taxes compared to the poor. After saving a money in the bank, the bank gives an interest rate of 1.5% and the government will be taxing at 0.22% (average income bracket tax), then the money in the bank will not be worth its initial value coupled with inflation.

![images - 2020-05-04T163509.102.jpeg](https://cdn.steemitimages.com/DQmNdzXQY9eN4EHyJER4L8z1q7SezPFxdNVhPY2RSQnY8A7/images%20-%202020-05-04T163509.102.jpeg)
[Credit](https://parkbench.com/blog/interest-rates-drop)


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It is good to have savings for rainy days or days of emergency but keeping your entire income in a savings account with the hope of withdrawing them in the next 10 years in other to enjoy the benefit might be good for you but it is definitely not for good for me. You can rather invest the larger part of your income into stocks and other investments.