Saving is not enough

[yamin_galib]

Saving is good for discipline but it won’t make you rich on its own. If your expenses are already higher than your income then the first step has to be increasing your earnings. Otherwise you’re just surviving, not growing and you're right about the loan cycle. It's just a trap unless you're using it smartly for an investment. Investing is where real growth happens but even that needs patience and good decisions.

[Egii Nna]

Saving only will not be able to change your narration of finances. That is why a wise man always says when you want to change your financial situation, you will have to take a bigger risk, and this risk is not all about saving your money because the money you get from working for someone will never be enough for you to take care of your expenses, talk more of savings, as salaries and wages were not designed to make you financially free but retain you as a paid slave.

So the best two ways to start up a business are by taking a loan that will be enough for you to set up a well-doing business and making sure you have another source to pay that loan back, not relying on the profit of the business to pay up the loan.

Secondly, by having investors or collaboration, this is even easier and simpler, as these investors will not like to lose, so they will try their possible best to see the progress of the business, and that will go a long way to help you gain more sales, which will bring more income.

[GiftedMAN]

Earning money is hard. Saving money is hard. Getting rich and being able to live comfortably is hard. But the truth is saving is not enough. Lots of people will ask how to really get out of poverty but the simple straightforward answer is that you need to be earning more than what you are spending. The question begs, is there a way to get rich even if your expenses are higher than what you are earning?

I don't think so. Some people might use credit cards or loans but it is just a cycle of taking a loan then paying it and you are not really moving forward are you? Saving also does nothing much but it can be a good start. You start saving money and at some point when the money is big enough you can start investing. Either in crypto, real estate or in a business. But just saving the money? Unless you want to keep working until the day you die then it will not be enough.

In this time and age saving money would do nothing for you..if your money cannot generate more money then you are still going to end up broke, it's almost like delaying the inevitable, sooner or later you are going to spend that money...so instead of just saving to spend in the future invest that money into something that you know is profitable.. This is why most people prefer to buy Bitcon than keeping their money in the bank

Saving money will do a lot of good things for you man I can't watch you talk bad about saving money as if you would invest if you don't have the money for the investment. You don't necessarily save money to spend it later but you can decide to save up to invest in Bitcoin or anything else.

Not everyone will want to involve in a DCA method of Bitcoin investment where they can be using a small amount to buy weekly or monthly, some people may decide to save up some reasonable amount of money before investing it and I think they should be encouraging.

[passwordnow]

Earning money is hard. Saving money is hard. Getting rich and being able to live comfortably is hard.

And this is why we need to choose what's hard for us.

But the truth is saving is not enough. Lots of people will ask how to really get out of poverty but the simple straightforward answer is that you need to be earning more than what you are spending. The question begs, is there a way to get rich even if your expenses are higher than what you are earning?

Nope, we give a straight answer. If you want to get rich and based on what you've said, you need to earn more than your spending.

I don't think so. Some people might use credit cards or loans but it is just a cycle of taking a loan then paying it and you are not really moving forward are you? Saving also does nothing much but it can be a good start. You start saving money and at some point when the money is big enough you can start investing. Either in crypto, real estate or in a business. But just saving the money? Unless you want to keep working until the day you die then it will not be enough.

Savings create more better people in the process. It opens the idea of investing and how to manage money properly. While it won't make someone rich but the discipline it trains for people that does it is very useful. There will be people that will say to get debts and use it to leverage, IMO, it's still best to take loans that you can afford to pay anytime than you have to work for it just for you to pay it.

[Raflesia]

It is necessary to realize that since the beginning of saving it is only for sensitive conditions but it will not be too worth it for the long term because we certainly know when we save especially in the form of fiat where we always keep our money there then it is certain that every year there must be a shrinkage in value in the sense that even though the nominal remains the same but when inflation is increasingly threatening then the value of the money we save in the end slowly shrinks.

Talking about wealth is clearly a complex thing because in the end wealth is flexible depending on each person who defines it but what must be realized in this case to make us comfortable for the long term then hoarding fiat is not a solution and I agree more with investing. Although it cannot be denied that investment is still risky especially when crypto is taken into consideration, in the end it will be quite useful for the long term because the nature of investment is like that, unlike savings which are for a shorter term.

[Yokkattannee]

Saving is good for discipline but it won’t make you rich on its own. If your expenses are already higher than your income then the first step has to be increasing your earnings. Otherwise you’re just surviving, not growing and you're right about the loan cycle. It's just a trap unless you're using it smartly for an investment. Investing is where real growth happens but even that needs patience and good decisions.

Yes, it is necessary to manage money wisely, that is what is recommended, that is the first point that must be done, then saving is an important thing to do for better financial planning, because one day we will need the savings that we save. The same thing applies to investing, it is something important to do, even though your income needs to be prioritized, that is the first thing that needs to be fixed, at least trying with hard work.

[Samlucky O]

Earning money is hard. Saving money is hard. Getting rich and being able to live comfortably is hard. But the truth is saving is not enough. Lots of people will ask how to really get out of poverty but the simple straightforward answer is that you need to be earning more than what you are spending. The question begs, is there a way to get rich even if your expenses are higher than what you are earning?

surely life is hard in whichever way, earning money could also be difficult as well. but getting out of poverty is by luck/chance and working smart. luck in the sense that opportunity comes in a platter of gold the same thing applicable to chance. then there could be scenario where luck and chance fails then you work smart by creating one for yourself. although it doesn't necessarily mean that we must earn more than we spend to get out of poverty but we can spend less and save more and use the saved amount to create opportunity for ourselves .

I don't think so. Some people might use credit cards or loans but it is just a cycle of taking a loan then paying it and you are not really moving forward are you?

taken loan is not a bad idea though, but the sole purpose for the loan is the main thing. if the loan can be used to start a profitable business that can pay the loan and the interest altogether and have some change to settle your need or having some amount that can be used for another business then such loan can be taken. but if the loan is not a profitable loan then there is  no need to take such loan.

[shinratensei_]

Earning money is hard. Saving money is hard. Getting rich and being able to live comfortably is hard. But the truth is saving is not enough. Lots of people will ask how to really get out of poverty but the simple straightforward answer is that you need to be earning more than what you are spending. The question begs, is there a way to get rich even if your expenses are higher than what you are earning?

I don't think so. Some people might use credit cards or loans but it is just a cycle of taking a loan then paying it and you are not really moving forward are you? Saving also does nothing much but it can be a good start. You start saving money and at some point when the money is big enough you can start investing. Either in crypto, real estate or in a business. But just saving the money? Unless you want to keep working until the day you die then it will not be enough.

It's pretty clear inflation is eating your wealth so anyone just saving their money in bank would be foolish because they are earning nothing.
For instance, just compare the people who put their money in BTC 2 years ago to people who just keep saving their money in bank and being paranoid. We got 5x difference of capital growth here with just putting money in bitcoin alone.

Pretty significant difference in result but for some reason people would still hold on to their fiat just because they are scared of losing it due to volatility, I mean dude you're already losing it slowly.

[Yaunfitda]

Saving is good for discipline but it won’t make you rich on its own. If your expenses are already higher than your income then the first step has to be increasing your earnings. Otherwise you’re just surviving, not growing and you're right about the loan cycle. It's just a trap unless you're using it smartly for an investment. Investing is where real growth happens but even that needs patience and good decisions.

Yes, it is necessary to manage money wisely, that is what is recommended, that is the first point that must be done, then saving is an important thing to do for better financial planning, because one day we will need the savings that we save. The same thing applies to investing, it is something important to do, even though your income needs to be prioritized, that is the first thing that needs to be fixed, at least trying with hard work.

That's why it is called savings. But it's very hard to do in the beginning, you really need to right everything down so that you can manage and budget everything. So it's a long process for us, but if we master it, we will know the effects. And then we should be also evolving as well, as one we save at least for 6 months bucket so that we can last if ever we lost our job. And then once we had enough savings, then we can go out and venture and maybe start a business. And then from then on, we evolved to be businessman and entrepreneur and one day be very successful thru hard work and patience.

[mich]

Well yes I do agree it is hard to earn some money in these days. And to save it is is hard because we need to spend our fiat so we can live our life.

I do not like to take loans because I dont like to make a interest payment on it. I will use my credit card and will pay some interest on that but I do not spend alot of my money.

[LogitechMouse]

Earning money is hard. Saving money is hard. Getting rich and being able to live comfortably is hard. But the truth is saving is not enough. Lots of people will ask how to really get out of poverty but the simple straightforward answer is that you need to be earning more than what you are spending. The question begs, is there a way to get rich even if your expenses are higher than what you are earning?
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None. There is no way for a person to be rich when his/her expenses is way more than what they're earning.

This is why the formula for those who want to be rich is Income - Savings = Expenses. If you will look at it, the remaining one is the expense, and that's because we need to prioritize saving first. Of course, saving alone isn't enough for us to be rich. Just look at those rich businessmen out there. They didn't became rich just because they saved their whole lives. They became rich because they used their money and leveraged it. They became rich because they used their saved money into building a business or in this case, an empire.

Investing could be a good start. Will investing alone can make us rich? Yes, and I believe we will as long as we know what we are doing. It's the same as business where if we know what we are doing, there's a chance that we will end up successful. Saving money ALONE isn't enough, but saving money is the FIRST STEP towards us getting rich.

[Apocollapse]

So you are saying that, in order to be rich, a requisite is that you have to be mentally ill somehow (who in their right mind would take such risks?). Don't get me wrong: I agree with you that it makes some sense.

It's true, just like businessmen, many of them have money, but they take a loan using their house or asset as a collateral. How this isn't mentally ill right? they take high risk which could resulting them ended up in debt instead of taking small risk for business and rest of the money for low risk investment.

They could argue "The business is profitable, I've earn x amount per month for 2 years, my business will keep growing", what I mean, there's no way to predict after two years your business will always be profitable, no one knows.

[Zivudu]

I totally agree with you.

Saving money is not enough, because some people nowadays do spend more than what they earn even without thinking of investment while they are working, hence it makes savings difficult .

[shield132]

Earning money is hard. Saving money is hard. Getting rich and being able to live comfortably is hard. But the truth is saving is not enough. Lots of people will ask how to really get out of poverty but the simple straightforward answer is that you need to be earning more than what you are spending. The question begs, is there a way to get rich even if your expenses are higher than what you are earning?

I don't think so. Some people might use credit cards or loans but it is just a cycle of taking a loan then paying it and you are not really moving forward are you? Saving also does nothing much but it can be a good start. You start saving money and at some point when the money is big enough you can start investing. Either in crypto, real estate or in a business. But just saving the money? Unless you want to keep working until the day you die then it will not be enough.

In early years of Bitcoin, even investing a few dollars per month would bring today lots of profit. Remember, Bitcoin was worth a few cents before it became expensive.

Btw many people want to get rich but they don't know what to do with it, so their basic instinct tells them to save money. Where I live, people save some money and then take a loan to buy a house, the bank gives them a loan with so high interest rate that in 10 years, they manage to buy a house but they pay 2x amount of the price. Then they rent it and after months or in the best case after years, their house needs repair because people don't care about the house when they rent it. Then they get older, and their dream of becoming rich remains a dream.

Saving is not enough to achieve that dream, you have to at least invest that money in crypto or stocks and in the best case, you should start a profitable business. Many people think it's easy to start business but most of them don't have enough knowledge to make it successful, so they fail.

[EarnOnVictor]

Earning money is hard. Saving money is hard. Getting rich and being able to live comfortably is hard. But the truth is saving is not enough. Lots of people will ask how to really get out of poverty but the simple straightforward answer is that you need to be earning more than what you are spending.

They can complain or try to push people from now till eternity, but the truth is, if there is no income improvement, everything will be hard for the person, especially the savings. I wonder how you want to save when you are earning what's not enough to pay the bills.

The question begs, is there a way to get rich even if your expenses are higher than what you are earning?

Yes, you can get it done if you;
1. Get a better-paying job
2. Increase your number of jobs/works
3. Develop yourself by learning new skills
4. Go into a viable business/investment with less starting capital and grow it patiently and creatively over the years.

[pooya87]

Saving alone has never been enough, investment is what helps one improve their financial status.

But as for the things OP said about about getting rich by earning more money, I have to say the way to make more money and live more comfortable than before is not to work more but it is to have a brain. Meaning people should start thinking more and planning more before they jump into anything.

Let me give you a real example.
In our neighborhood there are lots of shops/businesses. They keep changing, many start up a new business and then fail. The reason for most of them is that they don't think! For example if there is already a successful business (eg. a fruit shop) with a decent size that has been around for a while and has built up a customer base, it is stupid to open the same shop in the same neighborhood specially if it is a smaller business and can't even compete price-wise. That is guaranteed to fail.

So on paper, you'll see these people work real hard. They spend a lot of money and spend a lot of their time trying to make that business work but they don't spend brainpower on it to think and realize they cannot compete and they'll fail.
So they stick around for a couple of weeks, maybe 2 months and go bankrupt and shut down.

Now imagine if they had thought ahead and a opened up a different business (eg. an ice cream shop). It would have thrived because of lack of competition in our neighborhood and high demand. It wouldn't take that much effort either.

This is the difference between a successful businessman who will continue increasing their wealth and failed ones who keep losing money and becoming poorer.

[GigaBit]

Earning money is very hard but it would be  more harder to save money. It cannot be thought that saving can help a person to become financially independent or rich. There are many who have been saving for a long time but they are not able to take themselves to that level with time. To get out of poverty, a person should be encouraged not to save but to invest. Saving may help you a little, but if someone wants to keep poverty away forever, he should go for investment as soon as possible. Moreover, if the expenditure of any person is more than the income, then he will not get financial freedom in any way. I do not support long-term saving, but before investing, the person must create capital which can be from savings.

[Republikcoin.com]

Saving is good for discipline but it won’t make you rich on its own. If your expenses are already higher than your income then the first step has to be increasing your earnings. Otherwise you’re just surviving, not growing and you're right about the loan cycle. It's just a trap unless you're using it smartly for an investment. Investing is where real growth happens but even that needs patience and good decisions.

Actually, there is nothing wrong with saving as long as the assets we save are very good assets, such as Bitcoin and gold. Because in terms of saving, everyone has two basic desires for what they save, the first is the value of the asset itself which does not easily decrease and the second is the increase in the price of the assets we save. So in terms of saving, everyone must also be smarter in choosing it because when choosing the wrong asset to be used as savings, then it is true as you said that we will not find any development in life.

[Gozie51]

But just saving the money? Unless you want to keep working until the day you die then it will not be enough.

This is a nice question... Just saving money is of no value but hodling btc is a good decision. You can't compare the value of money you save in 10 years to the value of btc you hodl in 10 years because inflation rate keeps going high especially since after COVID-19 that some countries have found it difficult to get back to economic growth. Inflation devalues fiat but doesn't have any negative value on btc. In fact, you are better of with bitcoin because the price increase over time while fiat value drops. So if you convert the value you have in btc in 10years hodling into fiat, you are very much off the board with money kept in fiat for such amount of duration. Imagine buying btc at $75k just two months ago and now you should have about $35k ROI in two months which is very huge while the value of fiat remains constant in same period or has depreciated to say the least. So you can't be rich with mere saving of fiat neither will you be by spending more than what you earn but by investing and reinvesting.

[JoyMarsha]

is there a way to get rich even if your expenses are higher than what you are earning?

If your expenses are higher than what you earn, you amend your expenses by cutting them down. Nowadays, things are on the increase, people are finding ways to adjust their way of life in a way that will fit into the present hardship hovering around globally. It's just few people around the globe who are looking for other means to be financially independent. The rest of the people in the world are looking for means to survive, to feed themselves and their families with the little they have. Taking up any type of investment, it's hard for them to do due to their financial strength being low