Business By Hormozi #117: Saving Money Won’t Make You Money, But It Will Give You the Security to Think Farther Out and Take Bigger Risks

The Importance of Security in Business

Jared had always been cautious when it came to money. He watched his friends dive into risky ventures, eager to strike it rich quickly. But Jared was different—he focused on saving, building a buffer that would give him the freedom to think. While many around him scoffed at his cautious approach, he quietly accumulated wealth, step by step.

One evening, while reflecting on his journey, Jared realized that his disciplined saving strategy wasn’t just about accumulating wealth. It was about creating security. This security gave him the ability to think beyond the immediate, to take bigger risks that ultimately led to greater rewards.

As he thought about it more, Jared remembered something his mentor once said:

"Saving money won’t make you money, but it will give you the security to think farther out and take bigger risks…which will absolutely make you more money."

How Saving Money Enables Bigger Risks

At first, Jared didn’t see the connection between saving money and taking risks. However, after years of careful planning and saving, he began to understand that security creates opportunities. When you have a financial cushion, you no longer have to focus on short-term survival or living paycheck to paycheck.

Saving money allows you to think about the long term, and with that long-term mindset, you’re more willing to take calculated risks. Rather than fearing failure, you can invest in opportunities with a clear, confident vision for the future.

For Jared, his savings weren’t just numbers in an account—they were a tool for growth, enabling him to explore bigger ideas, take on larger projects, and enter markets he wouldn’t have dared to consider without financial security.

Taking Risks with Confidence

Taking risks is a vital part of entrepreneurship, but it’s a calculated risk that leads to rewards. When you don’t have money saved, every decision is fraught with fear of failure. But with savings, you can afford to take bolder steps because you have the resources to weather setbacks and keep moving forward.

Jared’s experience was a testament to this idea. By using the security from his savings, he could make bigger moves, like investing in new ventures, launching innovative products, and expanding his business. He wasn’t bound by the constraints of living paycheck to paycheck. He was free to act boldly.

Security Fuels Long-Term Growth

Saving money doesn’t just allow for risks; it allows for strategic growth. Many entrepreneurs fall into the trap of seeking immediate results, chasing fast profits, and putting everything on the line. But true wealth is built slowly, steadily, and thoughtfully.

Jared’s journey showed him that by building security first, he could avoid impulsive decisions and instead focus on opportunities that contributed to long-term success. With savings, you’re able to play the long game. And in the long run, that’s where the greatest rewards lie.

Conclusion

Saving money won’t directly make you money, but it creates the security you need to take the risks that will. Financial security allows you to think farther out, take calculated risks, and seize opportunities that could lead to immense growth.

If you want to increase your wealth, start by building that cushion. It’s not just about the money in your bank account—it’s about creating the security to make bold decisions that will pay off in the future.