Why You Can’t Save Your Way to Wealth (And What You Should Do Instead)

Saving your way to wealth might have been a great strategy as an 11-year-old stashing the cash from washing Dad’s car. However, it isn’t a great strategy when you’re a busy professional with a desire to create financial security.

Given the current interest rate is 0.1% and the inflation rate is 0.7%, you don’t need to be a maths whizz to realise where the problem lies with a savings-only strategy.

The truth is, if you don’t invest, your money WILL disappear over time!

Return on Savings: The Problem

If you work in and around London and have dependents of any capacity, the chances are you’re bamboozled as to how those around you seem to be getting wealthier, while your savings are barely increasing in value.

The answer is actually pretty simple: while interest paid on cash in savings accounts is a great example of passive income, it does not provide a good return on investment (ROI) by any measure.

In fact, taking the inflation rate into account, the return is negative and over time, money left in the bank will devalue to the point that it’s worthless – think about the cost of a can of coke today compared with 20 years ago!

But savings are easy. You don’t really have to lift a finger. How can you emulate this but still get a decent return on investment?

Investing: The Solution

People who understand how to make money work for them don’t save, they invest.

By doing so, they make much better returns, build a lasting legacy and work towards ultimate financial freedom.

While people understand that investment gives a better ROI than savings accounts, the thought of gambling their hard-earned money is enough to stop them from ever taking action.

But, since it is not a subject that is taught in schools, the only way to learn investing is to practice. It’s a catch 22!

Even if you do understand the basics of investment theory, you may not have the time to invest, let alone doing the homework on what actually makes a good investment.

It’s no secret that Buy-to-Let can be confusing.

If only there was someone who had already done all the hard work…

Property for Financial Freedom

Paying experts to do jobs is not new. So, it shouldn’t come as a shock that you can pay for someone to build a property portfolio for you!

This option allows you to focus on your busy lifestyle, while getting your money working for you.

At Lifestyle Property People, we help busy professionals build a low-hassle property portfolio that beats savings accounts, hands down.

To find out more, take a look at some of our Case Studies here

Saving your way to wealth might have been a great strategy as an 11-year-old stashing the cash from washing Dad’s car. However, it isn’t a great strategy when you’re a busy professional with a desire to create financial security.

Given the current interest rate is 0.1% and the inflation rate is 0.7%, you don’t need to be a maths whizz to realise where the problem lies with a savings-only strategy.

The truth is, if you don’t invest, your money WILL disappear over time!

Return on Savings: The Problem

If you work in and around London and have dependents of any capacity, the chances are you’re bamboozled as to how those around you seem to be getting wealthier, while your savings are barely increasing in value.

The answer is actually pretty simple: while interest paid on cash in savings accounts is a great example of passive income, it does not provide a good return on investment (ROI) by any measure.

In fact, taking the inflation rate into account, the return is negative and over time, money left in the bank will devalue to the point that it’s worthless – think about the cost of a can of coke today compared with 20 years ago!

But savings are easy. You don’t really have to lift a finger. How can you emulate this but still get a decent return on investment?

Investing: The Solution

People who understand how to make money work for them don’t save, they invest.

By doing so, they make much better returns, build a lasting legacy and work towards ultimate financial freedom.

While people understand that investment gives a better ROI than savings accounts, the thought of gambling their hard-earned money is enough to stop them from ever taking action.

But, since it is not a subject that is taught in schools, the only way to learn investing is to practice. It’s a catch 22!

Even if you do understand the basics of investment theory, you may not have the time to invest, let alone doing the homework on what actually makes a good investment.

It’s no secret that Buy-to-Let can be confusing.

If only there was someone who had already done all the hard work…

Property for Financial Freedom

Paying experts to do jobs is not new. So, it shouldn’t come as a shock that you can pay for someone to build a property portfolio for you!

This option allows you to focus on your busy lifestyle, while getting your money working for you.

At Lifestyle Property People, we help busy professionals build a low-hassle property portfolio that beats savings accounts, hands down.

To find out more, take a look at some of our Case Studies here