Why Saving Will Not Make You Rich

Let's be honest.

We've all been taught to save for a rainy day.

Even our bank accounts are labeled savings accounts. 

There's nothing wrong with setting aside some funds, but if your goal is to be financially comfortable and well-off, simply saving your money in an account will probably not get you the results you want. 

No one has ever gotten rich by just saving alone. 

Here's the reason why.

The interest that banks offers on your savings account is not enough to keep up with the inflation rate. 

The power of the money you're putting in the bank is not enough to offset the rise in prices and consumer goods. 

Simply put, your money is getting weaker in purchasing power if you store it in a vehicle that can't keep up with the growing inflation. 

Also, one of the reasons why this won't work is because you know that the money is there and it's yours for the taking, any time, any situation you might find yourself needing immediate money. 

By having cash stored, you're working to accumulate your cash and nothing else. 

When you quit your day job, your money would stop working, too. 

And the last, and often sad thing is that not all banks are reliable. 

My grandmother lost 1.5 million pesos because the bank that held her savings filed for bankruptcy due to fraudulent management. 

To this day, she still hasn't even received a peso of the minimum insurance deposit of 500,000 Php. 

Please, don't let this happen to you. 

So If Saving Won't Make Me Rich, What Will?

There are other ways to make sure your money works for you. 

You could either invest it in a business endeavor that would generate active income or passive income, or maybe both. 

That way, the money that you invested will be grow and maybe triple in value than if you simply set it inside a bank where you would have no say in how to utilize your cash.

With that, it's important to note that we aren't living in the Industrial Age anymore. 

Simply setting aside funds for the future won't guarantee financial security.

If we don't actively do something about our finances, then we're doomed.