Here are Surprising Reasons Why You Should Not Save Money!

Money should be used

 

Right now, you maybe saving every dollar you get because our grandparents taught us all about the value of saving money. They want us to save a part of our income every month and use that money to secure our future as responsible and mature individual. It was a piece of good advice… at that time, but it is not the case now. The catch is that our grandparents did not think of inflation. If they did, they might have also suggested you not to save money but make it work for you. Here are surprising good reasons why you should not save money and increase your financial literacy. Let’s start!

 

Do not save money! Money Should be Used!

The first thing to remember is that money is meant to be used, not stashed away. You can use it to spend on something you like or put it to work to make more money. If you keep sitting on money, it will leave you through inflation. It is a fact that the cost of living goes up by about 2% every year, on average. So, your money goes from A$100 to A$98 to $96 and 2% lesser every year you sit on it.

 

Opportunity Cost Matters

There is a simple concept in economics known as opportunity cost. If you save money, you might not be able to go on a vacation or buy the pair of shoes you really like, you will lose good opportunities as the money reduces its value over time. If you do not make memories, buy stuff, or invest your money to beat the loss due to inflation, you can end up with opportunity cost of thousands of dollars and we do not want that!

 

Do Not Save Money It Could Limit Your Money Knowledge

If you save money, you will limit your financial literacy. You will not be curious about investment options where to put your money into to get more money. You broaden your money options, invest it in stocks or buy something that you could get more money from. Research on invest options, put your money in them and see your money multiply.

 

Pay Raise is Limited

We know that you should get raises if you work hard. It would also be great to take note that, there is a limit on the pay raises that you can get in a job profile. So, a smart way to get over this limitation is to make money on the side. Do side hustles. Invest money in the stock market or purchase a rental property or setup a small business. Your aim should be to use the money to generate a new income source.

 

All in all, it can be said that it is high time everyone learns the value of boosting their financial literacy. It is also time you stop losing money by just saving it. It will, literally, wither away. Do not save money, invest it! After all, people who made it to the list of top 1% people globally did not get there by just sitting on the money, did they?

 

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