Paul said:
richardhutnik said:
Paul said:
If you spend less than you earn you'll probably become wealthy in the long run. People waste a lot of money on stuff that doesn't change the quality of their life. People are too concerned about what their neighbours have and overlook what's important in their lives. |
People don't get rich saving. They get rich owning assets that produce more money for them, and they leverage their time heavily. And then, from this, there is a compounding effect that happens. The saving is needed in order to be able to have extra resources that can be mobilized for more, and theoretically lead to an improved quality of life later. Save to day, get more tomorrow. But today, saving likely is running less than the rate of inflation.
What was discussed earlier in another post was about how America no longer had saved, and fell behind. This CNN article goes into further details on this, on America getting soft:
http://globalpublicsquare.blogs.cnn.com/2011/10/09/america-is-getting-soft/?&hpt=hp_c2
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Obviously investing your surplus cash in assets that generate more cash gets you further ahead than stuffing it under your matress. I believe that saving and investing go hand in hand. I don't really understand what your point is. If you spend more than you earn the only guarantee is paying lots of interest or going bankrupt.
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Saving is the equivalent of placing cash under a matress. The difference is that savings is there is interest on the money. You don't get wealthy doing this. Who gets wealthy putting surplus into a bank savings account? You don't.
