Tuesday, July 9

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Actually, you can't become rich by SAVING money

by Daniel Nkado



One of the most common pieces of advise people receive regarding achieving wealth is to SAVE MORE.

Look round the internet today, a lot of websites are filled with numerous tips and methods for saving money.


A lot of people actually believe that they can save their way to wealth. After all, if you can save up to a million, you've automatically become a millionaire, isn't it?

Well, it's complicated actually. Wealth do not work like that.

Actually, the most effecting way of becoming rich is investing your money and earning more.

Dandan Zhu, a top-billing headhunter, entrepreneur and investor, said:


"I became a millionaire by 30, largely through investing and earning - NOT saving. I only save enough so that I can invest the majority of my cash into REAL assets that are inflation-protected like residential real estate (my main poison), stocks, crypto, etc."

According to Zhu, investing is the real activity that will take you out of the middle class.

You'll never become rich if you hoard cash under your mattress or in your bank account for donkey years.

Yes, your savings will go up over time, but how many 90-year-olds do you know that achieved wealth by simply saving their salaries.

I'm not saying it's totally bad to save, but that has to come with a plan. So you will only be saving to get to the amount you need for your execution.

Yes, investing sure comes with its risks and fears, but achieving and sustaining wealth actually involves a lot risk taking.

One of the millionaires interviewed by ESI Money said: "I started investing in residential real estate in my 20’s, when I made a lot less money than I do now (the earlier you invest the better)."

“Start investing today,” says self-made millionaire, David Bach. “Because the miracle of compound interest starts working the day you put it in place — but the key to compound interest is that it takes decades. It doesn’t get done in days. When you try to get rich quickly, you stay poor forever. This is about building wealth for your lifetime.”

You probably might have heard this before but it is actually true: "I takes money to make money!"

The first step to becoming wealthy is successfully finding smart ways to make your money grow. The thousands you have in your savings account might remain that way for years...but if you put them out and to good use (very important) they just might turn to millions!

Investing involves risk. We’ve all heard stories about investors who lost all they had with bad investment choices.

We’ve heard about Ponzi schemes and other scams which stripped millions off people trying to invest.

Although you can never eliminate risk entirely, you can significantly reduce risk if you invest wisely.

Actually, too, choosing no to invest is not as safe as people believe. Money is not a stationary commodity -- it has a strong affinity to movement.

Whether you save or not, your savings can still disappear and you will have no explanation about how it happened.

While investing can be risky, it’s best to just deal with that risk, because not investing, just like investing badly, can also cost you money!

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