There is a popular opinion in the finance/business world that "saving money doesn't create wealth, only investing does" and I've even heard a couple people talk down at saving money like it's a bad thing. But then, it is a fact that you have to be good at saving money to be wealthy and a great number of the richest men today are great savers. In this post, I'm going to be sharing a few reasons why saving money is so important even though it's is often painted as an unwise thing and what its role is in wealth creation.
Before the coming of crypto, investing wasn't as easy as it is today. Most people had to either invest in real estate, companies with prospects, minerals and other commodities etc and to do this, you need to have a substantial amount of money. Unlike today when hearing a person invested $30 and made a million dollars is a common thing, you don't have such options back then and so the only way to begin investing / become an investor is to save up. This was why the piggy bank was so common and popular decades ago and people were massively involved with high security safe.
The money saved up after a period of time can be then used to invest and plan wealth creation. And for those who weren't sure of what to invest in, they either lent out the money or kept the money in the bank for interest. Howerer, times have changed, but saving is quite important still. Savings are helpful not only as a stepping stone to investments but also in wealth generation and accumulation. However, while saving up, we should remember to invest as it is by far the fastest way to build wealth.
Not to forget, savings also help in times of emergencies and this is why the culture of saving money will always be in existence and can never die. It might take a different approach like we've seen on Hive and other decentralised platforms, but it would always remain relevant.