Saving Money Disadvantages of saving money.

[Bookwormlux]

It is often believed that having a lot of money saved somewhere is a very big advantage to an individual because it helps them whenever they face uncertain situations are the cause of their life time.
But I also want us to take into consideration a scenario whereby saving money becomes a very big disadvantage .

This may sound somehow, sure , but since we have got so many advantages of saving money , I believe that there are also lots of disadvantages when you are saving .

Some of the disadvantages are:

- Saving stops you from being able to utilise investment opportunities that may present to you at the course of time , and you would definitely lose out .

- Saving does not in any way multiply your Money , that's to say the bank or any saving agency you are using is only using your own money for business, when you yourself is not making any profits at all.

- Savings can go missing due to situations like theft , or fire damage .
When this happens, you could lose all your net worth that you have denied your self pleasures to save for long .

- Saving money denies you the opportunity to enjoy your life . After all, what is the need of working all day without enjoying the fruits of your hard work ?

What do you think about saving money, especially as regards the disadvantages ?

 

[EKUSANI]

There are so many disadvantage of saving money I want to give an example of what happened to me so far I saved my money and it was being deducted from my account without my knowledge. I wish I use that money to at least buy some things , that I feel like eating would have been better . the disadvantage of saving money is that you won't enjoy the life that you wish to. don't buy the things you need because of your mindset is telling you to save money for better tomorrow. another thing is that,u won't be able to flex out with your friends and that can even end your relationship. talking about spending time with the family that would be difficult. I'm not even talking about buying or spending some money on your wife. there are a lot of disadvantage, but I don't want to mention a lot of it, there are so many disadvantage of saving money. that doesn't mean that there's no need to save money we can still save money for a better tomorrow. I'm not saying or I'm not writing this article for you to stop saving money because I personally save.

 

[Jasz]

1. One disadvantage of saving money is that you will be less likely to enjoy life. If you were to save your money for the future and never spend it, you would not get to experience things like going out with friends or taking a vacation.

2. Another disadvantage of saving money is that it can be difficult to do if you do not have a plan to follow. You may put money away every couple of weeks, only to spend it on something else later on because you did not have enough discipline.

3. Another disadvantage of saving money is that it takes time, and that time may be better spent doing something else such as practicing a hobby or working out at the gym.

4. You have less liquidity, which can be scary. Your return on investment could be lower than the market average, meaning you are losing out on possible gains. If your return is lower than inflation, it's really a loss.

5. You might have difficulty in solving emergency problem, you might feel the stress or reluctantancy of going to the bank.

6. People might see you as being stingy to them and yourself.
7. There might be low interest over your money if not even losing value due to inflation.

 

[eldavis]

I do not agree with most of your points though. There is no law that says while saving, you have no right to make an investment. I have seen people who share their earnings, they save some, invest some and spend the rest.
Savings do not also stop you from enjoying yourself. You can actually save a little, invest Abit and spend the rest on yourself. Everything still has to do with proper planning and management.

 

[Kendy]

Saving money might not be seen by some people as a way out of poverty but in its technicality, saving money is definitely a way out of poverty. Before anyone makes the decision to save money, he or she has a target to achieve either in the short or long run. It could be to start a business, purchase a real estate property, paying of house rents or investing in other profitable ways. Now, this is only made possible because of the ability to save. If the savings was not available, an individual would either have the alternative to loan money from financial institutions or money lenders and face whatever challenges comes with it.


Saving money is a practical way of finding your way out of poverty. If I am able to save money and I utilize it in starting a business, it means I have been able to put the money into effective use and I would not be pressurized because the money is solely from my pocket whereas if I did not have any savings, I might have to loan money and I do not have any assurances if the business I engage or whichever investment would be profitable. In summary, saving money is a necessary step to eradicating poverty.

 

[Mika]

When I read the title, I was thinking how can saving money have any disadvantage? Well, after reading the post, I cannot agree more. Saving cannot build your wealth, you cannot become rich by saving money, when you are too focused on saving, you will miss all the important strategies to grow your wealth. In my country, banks give you about 6 percent annual interest in your saving accounts. For example, if you save $100 in your saving account, banks will give you $106 by the end of one year. You earn a better interest rate on a fixed deposit bank account, For example, if you deposit $100 in a fixed deposit account for the term of one year, you will earn a 12 percent interest rate and receive $112 by the end of one year. However, if you invest in mutual funds, you can receive at least 22 percent (this is the rate offered by mutual funds companies in our country). You can ern even more if you invest in the share market. I don't mean to say that you should not save, what I mean is you need to save money so that you can invest in better projects.

 

[Ayuba Ernest]

You'll have to make a lot of sacrifices before thinking of saving. Here are some of my views about saving.

2. You will achieve financial independence only after a certain age, so you must focus on your savings until then.

3.You may provide your future generations a better life if you save, but it's also necessary to have a good life yourself.

4.Working so hard to be happy in your 50s is fine, but losing family relationships and skipping vacations are not.

5.Before spending even a single cent, you must ponder long and hard. You will always be thinking of ways to save once you start saving, and you may miss some critical moments in your life.

Savings are vital, but you should also take vacations and spend time with your family.

 

[Dora Wi]

I do agree that investing might be a better use of your money - though, in my opinion, this only applies beyond a certain amount. To some extent, it is good to have some savings that are easily accessible in case of an emergency or unexpected expense.
What I don't agree with is your point "saving money denies you the opportunity to enjoy your life". Of course, it is possible to overdo it and start resembling Ebenezer Scrooge, but for the average person, there has to be a balance between saving and spending.

 

[Sotherefore]

Lolz, saving of money does not deny you the opportunity for you to enjoy your life , it all depends on what you want and also how severe you are interested to save your money . There are so many people who do not see the need of enjoying themselves but they are just interested in saving , well maybe they have their own reason and they have the main purpose why they are doing it that way.

Even if you are determined to save your money but that does not mean you shouldn't enjoy your life because you do not have to save all the time , enjoyment of life also is not something you will be doing everyday. Its just something you can do on weekly basis , so taking out some money for refreshment and relaxation is not really a bad idea.

The advantage of saving can never be underestimated because saving offer greater advantage if we are to compare the it to the disadvantage you are saying.

Also what I have come to understand is that the disadvantage of saving are just the normal enjoyment of money, which won't really take anyone further in life and in most cases it could make you die poor.

 

[Augusta]

This is one topic that I will write that no matter how glorious it will be painted that savings isn't good or have huge disadvantages that I wouldn't buy because. speaking from experience. Any one that doesn't save money would hate self during the rainy days because it would shock you that you might find it very difficult to find one that will help you financially. Even those you are about to beg from, if they did not save their money how would they be able to help you with some money.

Yes I know theft might happen, this is where you need to be very careful with your funds to avoid being taken away. But even at that you might find help easily if you beg someone for money citing that you were duped or your account was hacked and money taken away than just saying you have never had money and that you need financial help. For the later people will be see you as a fool that didn't know that he or she should save money for tomorrow.


So in whatever capacity big or small just save money and after the disadvantages for now.

 

[btaliat]

It is errreneous to conclude that saving doesn't come with its own disadvantages despite the fact that its advantages is so numerous. The following are the disadvantages of saving.

Saving denies the person of good life. There are some things that are necessary to buy but we may not want to buy those things not because we don't have money but we must not buy them because we have some saving goals that we must meet up with. I have known some people that won't even have subscription on their decoders just because they don't want to spend extra money subscribing.

Not only that, saving is not even encouraged because economic is not predictable. There may be inflation which will make the money to lose value. It will amaze you that what $50 in Nigerian money could buy some years ago, the same amount cannot buy those things again. This means when we save, the effort may be wasted when inflation sets in.

Saving cannot make one's rich. You can never see someone that save to riches. It is not possible. Some have been saving since all these while and the only thing that can benefit from that saving is the fact that they can still the capital they have been saving and not reasonable amount added to them as the interest.

 

[Rachael]

To everything that has an advantage, it comes with a pedigree of disadvantage. Saving money has demerits as well because to some individuals, it denies them of a life they should have lived. Personally, I try to cultivate the habit of saving 15% of what I earn in a month and if I am to follow that way, I am deprived of so many things because the income I realize at the end of the month is not enough to cater for my needs. In most cases, I still end up making use of them.


The demerits of saving money also causes one to miss some opportunities. Yes, this is my story, there is an agency that needed to train upcoming entrepreneurs and demanded some certain amount of money, in order to stick to my saving plan, I had to forgo it. But on the other hand, the importance of saving money cannot be outweighed by the demerits. Saving money has helped me in so many ways. I have been able to boycott or avoid the urge to obtain loans which would definitely lead to bad debts. Even when I save money, I still keep some pat to enjoy myself.

 

[Holicent]

There are a variety of reasons that saving money may not be the best option for you. If you're saving money in anything other than the safest forms—like savings accounts and treasury bonds—you might lose principal, or worse, all of your investment. In fact, even if you're investing in safe options, inflation and fees can eat away at your returns until you have less saved than when you started.

Sometimes it's simply too late to save. If you've already racked up a lot of debt and need to pay it back as soon as possible, saving for a rainy day may not be your best course of action. If you wait until later to address your debt, it could cost you a lot more in interest alone.

You may also want to invest your money rather than save it, even if it seems riskier on the surface. Investing can offer higher returns than saving, but it's important to understand what kind of return you want and how much risk is involved in getting those results before diving into any investment product.

 

[blessingc]

Saving is one of the most basic and most repeated bits of financial advice out there. Despite the importance of saving money, many of us aren’t following through on that tip. The importance of saving money is to give you cash reserves that you can use when and how you want.


Despite the lots of benefits involved in saving money, there are still disadvantages.

Savings accounts have a notoriously low interest pay out. Some banks do not even give out interest to customers who have a savings account in their bank. It is less profitable to save money and come back to get it just the way you kept it without any addition. Sometimes the bank even take charges from your account for account maintenance. It quite unprofitable.

Not only is the money you get paid back low, but you also get hit by the second punch of inflation. When there's inflation, the value of your money won't be as much as when you saved. In a country like Nigeria, when you save your money in the bank without any interest it can affect you when you withdraw, because the amount of money you saved when you are ready to make use of it, it might not be enough to purchase what you planned using it for.

Investing instead of saving can help reduce the disadvantages, if you are only putting money into a bank account and not investing it, you are actually losing money long term.

 

[Abigael]

Saving money is one of those qualities that you will be highly recommended by any financial advisor you meet. It comes with so many advantages ranging from that of helping you afford anything you set your mind to buy and saves you from taking unnecessary loans. But everything that has a positive has it negatives. The disadvantages of saving include;

The money just sits there, it does not multiply like it would if you invested the money. Think for example if you decide to just save the money in a bag and put it in your house. That money will not be as good as the money you decide to invest into a sacco or do forex trading with it.

Saving denies you so luxuries. I know saving is important, but we are also human beings and so we desire to engage in some luxurious activities that need money. If you are focuses on saving, you will miss out on those luxuries. So as much as you save, you should also spoil yourself sometimes.

Saving can lead you to face inflation issues. Making your money sit in the bank for a long period of time makes it loose value when inflation occurs. The amount you saved long ago is not able to afford what you could have bought with it then in the present time.