Can You Become Rich by Saving Money?

By First Posted: Mar 30, 2018 Fri 2:16 AM Updated: Nov 30, 2019 Sat 8:49 AM
 
Can You Become Rich by Saving Money?
Image Credit: Fuel Cells Canada

If you had a buck for every time you were told about benefits of saving (or read about it), you would definitely be rich!

But one question that many people, especially youngsters, ask is 'Can one become rich by saving money'?

The truth is that just putting away money for your future won't make you rich. The act of saving in itself cannot make anyone rich. If it could, the middle class that slogs away life in salaried jobs would be the richest! But they are not. There are 2 ways of becoming rich:

1. To have an idea - If you have a great idea, you could borrow other people's savings from the bank and make it work for you. Successful business ideas are rare but when you have one, it can make you rich quick!

2. Saving and Investing - Though just saving won't take you into early retirement, coupled with sensible investing - it might! When you are young, it is the best time to save money and invest in equity markets or different kinds of funds. Investing allows you to earn compounded interest and watch your money grow quickly.

So even though saving itself won't make you rich, it does allow you to grow your wealth if you know what to do with your savings!

 
 
 
 
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