There’s a great misconception about saving up money so that you can have so much to fall back on when you need the money. Some people now think that the way to make a lot of money is to keep saving and saving until the money becomes so much and then you are wealthy. While this opinion my shock so many, you will also find out that there is yet to be a millionaire who has become very rich just by piling up bales of money somewhere.
Am I saying you should not save? No. it is important to have something to fall back on in case of emergencies. There are things that will spring up on you when you don’t expect them. Some of those things can also keep you grounded for days or weeks or even more if you don’t attend to them. In such cases, your savings will save you. You might intend to save up to pay some quarterly or yearly bills but that’s the best that your savings can do for you.
It’s called savings! So it saves you from some embarrassments. But when you are really working towards being rich then there is something more important that you need to pay attention to. When you pay attention to this then you will save and do much more than save. In fact, when you ask questions from all those who have been saving over the years, you will find that it takes them a long time to really put together all that they ever intend to put together. The implication then is that when you are even saving up to buy certain things, the things you are saving up for may have become outdated by the time you are done saving.
So what’s that thing that takes savings out of the option if you really want to become wealthy? It is called inflation. As you save and hoping that one day you will become rich, inflation is going on around you. Things are becoming more expensive. The things you are planning to acquire are becoming more inaccessible. The more you spend time saving, the more these things are becoming expensive. As they become expensive, your savings depreciate in value.
Because of this, you will realize that when you probably decide to save up for a period of one or two years, by the time you are done saving your saved up amount no longer has the same value as it had when you decided to save. If you have save up a million today, the one million you have saved up no longer has the same value as it used to have when you started.
Having realized this, what is the way out? You have to think about other savings plan that yield some form of profitable interest for you. I am not talking about the kind of interest that the bank promises you when you save up for one whole year. I think the best of those banks probably offer you thirteen percent increase or interest on your savings for the whole year. While you are looking at those peanuts, the banks are making good profits from your money by lending it to business people who pay more than twenty percent back on their loans. Saving is just not a good business because your money does not appreciate at all or, with the bank, it appreciates too slowly.
The other thing is to invest. What you have may seem small to you but the problem is not always the size of the seed. It’s about the ground into which the seed falls. It’s about the nutrients available to the seed in that ground. In the most fertile grounds, the smallest seeds can become the biggest trees. They will outgrow your imagination. Your little savings, when invested, can do much better than just keeping your money somewhere and hoping that you are keeping good money.
Have a rethink today. Saving is not totally a bad idea. But as soon as you save up something, just transfer it into an investment that offers you something really good. That way, you will not be piling up money, reducing its value while hoping that your money is growing.
Here’s my final word on saving. If all you do is to ever save your money, while hoping to become rich and you take the money to the bank, it is clear to the bank you don’t know what to do with it and they will gladly give it to those who know what to do with it and make money off what you are saving.
Fola Daniel Adelesi
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