Is saving one's money a bad idea?

Question

We're taught our entire childhood that saving our money is best... However, I'm not so sure that it is. Let me explain why-

Inflation seems to be the biggest reason why not to save. With each passing year inflation makes the American dollar less and less valuable- therefore the greatest way devalue one's wealth would be to "hord" it and refuse to spend it... I'm almost convinced that the best thing to do with money is to save as little as possible and invest the rest in homes, realestate, stocks, etc.

It seems that unless one is saving his money in an account where the interest rate is higher than inflation, saving money is a bad idea.

Am I thinking alright or I'm just being crazy?

Answer 1

For individuals saving is a virtue,it is for a secure future.

But for the country increasing individual savings result in lower effective demand for goods and services, recession,lower wages etc.

You can not fight inflation based on an interest linked investment portfolio.You have to diversify your investments .Real Estate gives better return on long run.Shares give long term capital appreciation.Investment in Gold is another opportunity.Paintings and artworks appreciate manifold.You have to explore all possible instruments of savings.Bank deposits will not give any relief to problem of inflation.

Answer 2

No, its not a bad idea.  Although yes, it is true that if nobody spends their money, it would cause problems, on a personal level, as long as most people are still investing, it is good to save.  But, I'm not saying, don't invest.  You should have a strong mix of both savings and investments.  Therefore, you can help the economy, while still keeping your own money safe.

Answer 3

That makes perfect sense to me.

Answer 4

The stock market is going to love to eat up all your hard saved money, and once the sharks take you for all you have, you will wonder why you did what you did and go back to saving once you finally get all your debts paid off. good luck! hope you know what your doing.

Answer 5

invest invest invest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest investinvest invest

I would invest in Natural Resources, Engineering, ALL IN Dubai, + Saudi Arabia.

Also Drugs, because theres alot of Seniors in the Market, and stocks will be going up.

im 15 and im trying to get an investers account at my bank, and they told me to *******

hehe gl to you sir.

Answer 6

no

Answer 7

That is correct, high interest accounts are the best way to go if you do not want to invest but for the best return some stock in a solid company will do more for you in the long run