With the degenerating and struggling economy globally, saving money sounds like a lover’s game. As long as inflation keeps flying high and the economy has not been able to stabilise, your money keeps losing value and dying till you put your money to work. The value of money ten to fifteen years ago is not the same as now. Saving money will never make you rich but you will only be SAFE within certain time frame. These are the three reasons saving will never make you rich.
Interest rate right now is extremely low and the banks is using your money as loan to companies and investor who leverage on your money to make more money for each other while you are on the losing side. The bank take from your saving and give to customers who are ready to do business and make profit at a higher rate. What it means is that you finance your bank’s business at a low rate of return on your money at the expense of making you poorer and enriching themselves.
The level of insecurity affecting farmers, kidnapping and many more has influence on the countries economy. Let alone the depressive economy we are struggling in. All these has a part to play in inflation affecting the country even food supply currently. When the government prints more money like the US- government about to pay a stimulus check. Inflation has eroded will erode the economy and money loses it’s value. That means your naira buys less than you think. For example, if you buy 20 cups for N200naira five year ago but now N200 now buys 10cups. Your money has lost value over time. You bought two T-shirt for N3,000 five years ago, today you buy one T-shirt for N3,000 or more.The value of your money has declined over time.
Because money continue to lose it’s value and worthless almost everyday, the price of things keep getting higher. The price of everything keeps changing everyday I.e it’s either up and down like currency. If you buy a bag of cement for N3,000 last week, the following week it will either be up by N3,200 or N2,800 and it keeps fluctuating. The place you take transport for N100 is now N200. You can see how things are changing and your money in the bank keep dying and fading away.
Saving money should be for short term plan and to project into long term investment that will yield better returns on investment with time. No matter what you earn from your savings interest rate it will never be as good as what an INVESTMENT and BUSINESS will create for you and how they will make you rich.