Saving is good. In fact, in IMG-Wealth Academy we advocate people to save. But only to save as much a certain amount and we don’t recommend to save all your money in savings account where it will not grow. Savings account is good due to its liquidity, meaning that you can withdraw anytime without worrying about the market condition.
Here’s the reason why we encourage people to invest instead of just saving and keeping their money.
You’re not beating Inflation
Inflation is the rate at which the general level of prices for goods and services is rising, consequently, losing your currency’s purchasing power. It usually rate for about 4 – 6% per year. Depending on our country’s performance, it could go higher or lower.
If you save all your money, it will just lose its value over time, declining 4 – 6% per year until it loses all its power to purchase.
This should always be a factor to consider in order for you to grow your money.
Your goals are too BIG..
We all have a goal. Be it your dream house, vacation, travel abroad, a car or you are preparing for your wedding or your child’s education. It all needs to be funded.
With all that goals, you’ll go broke if you try to allocate your funds there. Or it will take you hundreds of years to actually achieve those. Unless, of course if you have inheritance or backing of your wealthy parents, it depends. But on a common work hard, save money person, it will not work.
Having another source of income and investing in various financial instruments would really help you to achieve your goals.
In summary, saving is good and it’s a habit towards financial success but it’s not enough to grow your money to beat inflation and achieve your life’s dream.
Achieving your goals financially as soon as possible will give you more time to pursue growth in other aspects of your life. There’s is so much thing to do and money is just a tool to fund all those things you have in mind.
PS. We are advocating Financial Literacy, teaching people around the world how to achieve their financial goals. Our mission is to help each and every family to achieve financial independence and away from financial insecurity during this challenging times. Attend our FREE Personal Finance Seminar. Register here.
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