Saving: 1st Step To Become Poor. Many people say save money save money and you have been like okay I will do it
But what I am saying is that saving is the first step to becoming poor.
Yes only saving is the 1st step toward becoming poor
Let’s start with 3rd point saving is like addition
If your income is 3000$ per month and you save 500$ every month. At the year’s end, you had saved 6000$.
After looking at that money you are like
Wooow
But the reality is that you hardly can spend the holiday with this amount
Oh no
So don’t focus on addition focus on multiplication
Multiplication?
If you had invested that 6000$ you might have grown to 60000$ or 600K$ who knows
The conclusion is that saving has an upper limit and investing doesn’t have
So I hope you got the point saving is like addition and investing is like multiplication focus on multiplication friends.
But many people will say in investing there is a risk of losing money.
Yes you are absolutely right but have a look at the next point
2nd point Inflation
Do you know the average global inflation is around 5.2% in 2023
See this
Because of inflation, your money loses its value every now and then. That means if you only save money then also you lose your money value by 5.2% this year.
Disclaimer: This is global average inflation data. Check your country’s inflation data.
So if you don’t invest then also you lose your money. That means 100% sure you are going to lose your money power in the future.
And when you invest either you grow your wealth or lose a 50-50% chance of winning.
What do you want to choose 50-50% of winning or 100% of losing it’s your call.
Hidden secret if you research well before investing the chance of losing money becomes very low.
Now let’s see 1st point Missed investment opportunity
Because of saving money, you had not invested your money. Many times it happens that you want to invest money but you don’t have much money for saving so you opt to save money instead of investing.
But after a few months what happens is that some stocks go from here to here
After seeing this you are like…oh no man…
But again I am saying Investing needs proper research and I highly recommend doing your own analysis before putting money anywhere.
After listening to all these you will say okay that means I don’t have to do saving right?
No wrong…
If you had read the article carefully I had said only saving is the 1st step towards becoming poor at the beginning.
Only saving…
You need to save money but the thing is that you can’t save a major part of your income in saving.
For example, you can save 10-20% of your income for saving, and the rest you can put into investing.
Now you will say we struggle how to save money fast. So read how to save money fast or 25 money mistakes.