Does Saving Money Make You Richer?
By Toby Tunwase
The act of saving money cannot, in itself, make you rich. But don’t get me wrong. Saving money helps a lot. That’s why a lot of us talk about it. A good saving habit can help you get rid of lavish spending and purchasing unnecessary items. But face it, ordering water instead of beer, or soda at a bar can only save you a few hundred bucks.
Saving is a good way to start your journey to financial freedom. But long-term saving might do more harm than good. There’s this thing called “Inflation”. Ever heard of it? Sure, you have! It is the devaluation of a currency that happens over a space of time.
For instance, in the USA, somebody who’s saved up $100,000 to $150,000 in the 70s can easily retire with no worries. Today, $1 million cannot afford you a comfortable retirement.
So, as much as you save, also learn how to invest. There are several things you can invest in, and several assets you can buy. One of the fastest ways to become wealthy is to save your investment profits and use it to set up a new investment plan. You can also use your savings to set up a new business in a more lucrative industry.