Can your savings make you rich?

[King bell]

Your savings cannot make you rich. Savings are the lifeblood of a healthy financial system that creates growth opportunities, fosters innovation and ensures investment in new industries.

But an individual , like you or I , saving money can never make us rich. How so ? If we saved all our extra money ( for example on coffee ) for as long as it took us to save $1 million dollars , then we could be considered rich by many standards . But even after that point , any additional savings does not increase our wealth .
Prioritize your savings for what makes sense for you and your situation ; retirement funds may well need it more than an expensive car purchase .

The wealthy are the ones who earn money and invest in future opportunities, creating value for the economy . And when the economy grows , we all become richer .

 

[Heartstrings]

Well,to my own understanding, savings can not make you rich but investment can. When saving you will have to have plans and aims,why you are saving such money and what for? Even when you save to buy a car or build a house,it still can not make you a rich person. Saving is just like a back up plan you can fall back into if things aren't going well at a particular time.

When you save up for years without using the money you can as well as invest it on something useful in future and gradually you getting rich. You can just get rich overnight,it requires hard work and focus to be able to achieve that.and we should be aware the more we save the more our bills and needs arrises.

Most of the rich men and women out there mostly put their money into investment and despite our leaders and politicians been rich they still invest their money on something productive.

 

[Ithedicious]

Well I have come to understand that there are so many reasons why people saves money. But no matter the reason we may save money if we are not interested to use that money to establish something or probably invest in business or real estate in the future then the possibility of Us getting rich with our savings is quite lower except in few conditions which I will state it below..

The only way you can be rich with your serving is only when you are earning so much. In that case you may not likely want to start up a business and you can save as much money as you want which will definitely makes you more richer.

Another way you can be rich with saving is only when you have established a profitable business and this business is generating you a huge sum of money at the end of the month.

 

[Mika]

Saving can make you rich but I will take really long time, probably 25-30 years, provided you save every month, deposit your savings in high yield saving accounts, and continue to compound your interests. Let's say, you save $100 every month in an interest bearing saving account. in one year you wil have $1200 principle amount along with interest on your savings. You then put your principle amount and interest in high yield saving accounts like fixed deposit. Every year you increase your saving amount by 10-20 percent and continue to save money along with interest in fixed deposit account, you might have almost a million dollars in 25 years. You cannot get rich fast by saving money, unless you are saving $10k every month. However, if you invest money instead of saving, you will receive better Yields and will become rich faster. Interestingly there is almost zero percent risk in saving

 

[Richee84]

From my own look of things I will say savings can actually make us rich contrary to what you have explain in your above statement.
I understand with you point of view that investment is far better as it create wealth to the owner but the fact is that people will have to save at one point in time to enable them have money to invest.

We can never totally separate savings from invest, most people that have investment today have actually save some part of their hard earned income and later invested that money into a business that brings in income for them. There are so many reasons or motive for saving money and I think one of the motive or reason is for investment purposes.

I can say that all most or if not all investment by people started with savings. At least as an investor, you won't just wake up one day and start investing but you must have been naturing you business ideas for long time and start saving towards it gradually. It is when you have little savings on ground that you can now start talking of what to invest on.
Savings can actually make someone rich if the savings is invested on a good business.