Why Saving Alone Won’t Make You Rich

In August 1929, John J. Raskob—a man who helped build the Empire State Building—made a bold claim about saving money:

For years, I believed saving was the key to wealth.

I followed every traditional piece of advice:

• “A penny saved is a penny earned.”

• “Save for a rainy day.”

• “Pay yourself first.”

But here’s the harsh truth: No matter how hard you save, your earnings will always limit you.

Inflation will eat into your hard-earned nest egg, and the opportunity cost of not investing will grow larger every day.

The Problem with Saving Alone

Raskob’s insight rings true: savings alone can’t make you rich.

Sure, saving diligently for 40 years may leave you with a hefty sum, but true wealth—the kind that gives you financial freedom—requires more.

Wealth isn’t built by hoarding cash—it’s built by putting your money to work.

The Framework for Wealth: The 3-I Formula

To shift from a savings mindset to a wealth-building mindset, follow this simple framework:

• Income: Maximize your earnings. Whether it’s your business or side hustles, aim to generate surplus cash.

• Investment: Channel a portion of that surplus into assets that grow—like stocks, real estate, or index funds. This is how you unlock compounding.

• Iterate: Continuously improve your financial literacy. Read books, listen to podcasts, and experiment with small investments to learn and grow.

Pro Tip: Start small. Even investing $100 in an index fund today sets the foundation for long-term wealth.

The Transformation

I’ve seen this formula work wonders. My net worth doubled in just two years—not because I earned more, but because I put my money into the right investments.

Investing brings freedom. When your money works harder than you do, you gain the freedom to focus on what truly matters—whether that’s building your business, spending time with loved ones, or making a bigger impact.

Imagine a future where financial stress is a thing of the past.

That’s what awaits you when you make the shift from saving to investing.

Your 1% Improvement Challenge

This week, take one small action toward financial freedom:

1. Open an investment account.

2. Allocate $100 to a beginner-friendly ETF, like the S&P 500.

3. Track your progress weekly and celebrate the small wins—because small actions compound over time.

Stay Productive

~ Elevated Path

P.S. Bonus Resource:

Check out these 3 books to kickstart your investing journey:

1. The Little Book of Common Sense Investing by John C. Bogle

2. Rich Dad Poor Dad by Robert Kiyosaki

3. The Intelligent Investor by Benjamin Graham

Your future self will thank you for starting today.