“Save to Invest, Don’t Save to Save”
It’s fun to find ways to cut down on day-to-day expenses . Savings can be increased. But what matters is what you do with the money you save. The whole point of a cut is to spend that money on something better. As author Grant Cardone put it, “save to invest, not save to save.”
In an Entrepreneur article on how he became a millionaire by age 30, Cardone notes his intentional saving:
The only reason to save money is to invest it. Put the money you save into safe, sacred (untouchable) accounts. Never use these accounts for anything, even in an emergency. This will force you to continue with the first step (increase income). To this day, at least twice a year, I go broke because I always put my surplus into businesses I don’t have access to.
This is a helpful reminder if you are trying to get rich. In fact, if you save money on a hard-to-reach account, it has time to grow. If you’re in debt, this advice still makes sense: Save with a purpose. In this case, your “investment” is to get out of this debt, not spend money on interest.
Bottom line: Saving money is great, but making the most of your savings. Check out more Cardone tips at the link below.
How to Become a Millionaire by Age 30 | Businessman