How to build wealth in Dubai?
When people want to save money, they usually put their net disposable...
Savings is for emergency and short-term needs, whereas investing is ideal for medium and long-term financial goals.
When you save money in a bank, it lies idle, earning interest much less than the prevailing inflation.
Whereas when you invest your money works hard for you and makes more money.
Positive vs Negative Compounding
Investing helps you benefit from positive compounding, whereas saving for long-term goals is affected by negative compounding due to inflation.
Savings helps you accumulate capital. Investing helps you beat inflation and adds more money to your capital, thus helping you grow wealth.
Savings provide liquidity, but Investing can provide a regular income.
Particularly during retirement and periods of low or no income, Savings create a feeling of scarcity, as to what will happen when the savings exhaust. Whereas investing creates a feeling of abundance, due to the income from investing.
Easy access to money saved creates an urge to spend, whereas money invested for long-term goals grows and multiplies.
It is enough to have savings equal to emergency needs and short-term needs. And it is very important to invest to achieve medium to long-term goals, grow wealth and leave a lasting legacy.
As a Qualified and Independent Financial Advisor, I can help you invest for our medium to long-term financial goals.
Arrange a Free Consultation to help you identify your financial goals and set up an action plan for achieving them.
Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours...