Your Bank Account Does Not Make You Wealthy , But Your Investment Does.

[viljy]

Wealth can only be created by investment, and not dumping huge amount of money in the bank .

What is your take on this?

This is usually the case, but not always. For example, one Russian politician has almost a billion rubles in the bank. Considering that the income on bank deposits in recent years has fluctuated from about 12% to 20% and vice versa, he earned up to 200 million rubles a year on this alone, that is, about $2.7 million a year without any complicated and risky investments. How did this become known? Because such high-ranking officials are required to declare income and property publicly.

[Kelward]

Banks are where people keep their money until they need it for spending, it was not designed to make you rich except that they are now giving interests which is very small compared to the amount that you deposit and inflation will eat both your savings and interests over time. It is good that your money should be working for you instead of sitting idly in the bank and depreciating over time and that is why investment is a better option because you're holding a valuable asset which can make you rich on the long run. Remember that the level of your investment depends on the level of returns that you will get, if it is just a small fund that you used to buy your asset there is likelihood that you won't become rich through it.

[Xackie]

Inflation is the main issue that affect people who keep their money in the bank. Any economy that isn't doing well will always be impacted by high inflation, which causes devaluation of currency and reduce purchase power. Salary can only keep someone stable, but if they want to be rich, they need to make their money work for them and that can be done through investing or starting a business. We know that investing/business is also risky, best thing to do is , by planning on how you want to get started, learning, have some money inside the bank for emergencies then channel surplus into assets that can outpace inflation. That way creates balance, whereby if they need urgent money they can quickly run to their bank, while their investment/business yield them significant gain in the long term.

[sunsilk]

Wealth can only be created by investment

I agree but that's not limited to investment only. It can also be obtained through inheriting someone's wealth like Amelie Trejes, she's the youngest billionaire because she's an heiress of the WEG company.

Another way but by through luck, winning the lottery. But I believe most of the lottery winners become broke eventually because they have no money management skills.

They're surprised by how massive their wealth they have owned but due to lack experience and knowledge, they can't maintain it.

So someone able to experience the ups and downs in investments give them the head start when they reached that point of success.

[Outhue]

There are big time investors that have failed to be successful, when people talk about investment they all make it sound as if you are automatically self made, that's a lie, you will still have to hope for the best of good luck because every investment is risky, there is a chance of losing your money too.

There are people who got ruined because of bad investment choices, there are people who are living very comfortable in the past and a single investment choice ruined it all, their lives changed and everything turned upside down, we need to be careful with investing too, it's not always a bed of roses 🌹.

[free-bit.co.in]

Wealth can only be created by investment

I agree but that's not limited to investment only. It can also be obtained through inheriting someone's wealth like Amelie Trejes, she's the youngest billionaire because she's an heiress of the WEG company.

Another way but by through luck, winning the lottery. But I believe most of the lottery winners become broke eventually because they have no money management skills.

They're surprised by how massive their wealth they have owned but due to lack experience and knowledge, they can't maintain it.

So someone able to experience the ups and downs in investments give them the head start when they reached that point of success.

I would also add that there are many other ways to build wealth. Such as inventing something or owning valuable patents, building a personal brand and monetizing content, or pursuing a career in sport or entertainment...Overall, there are many ways to build wealth, not just through investing.

The path someone chooses depend on the individual. It also depends on their interest, talent, skills, opportunities and personal circumstances. It doesn't have to be investing.

[Rockson1]

Any money kept in the bank can be affected by inflation, and possibly decline in value, but invested money sustains the value of your currency, grants the investor financial freedom, and boost economy as well.
Wealth can only be created by investment, and not dumping huge amount of money in the bank .

What is your take on this?

These points you made here might be difficult for those who do not have values for investment to understand, to invest is a decision and it takes someone that thinks about the future and how to prepare for it, to make it a necessity to invest in valuable assets, I can say that in the recent times, there have been redirection of individual mindset in terms of financial decisions regarding investment, what do I mean, athough it is not that bad to leave some amount money in fiat for ether emergency or for personal use but investment should be given more consideration and priority because of the future which is what what most persons do presently, especially those that has come to know Bitcoin.

I agree with you that the foundation of wealth is investment because i don't think that there have ever been a salary earner that is wealthy apart from those of them that made the right decision to invest in different assets as they are capable of for a long-term or public office abusers that loot public is regarded as illed gotten wealth

[Youngrebel]

I agree with that statement, no matter how much you think you have in your bank account it's always going to be fleeting but it is actually your investment that makes you wealthy. This is why when a person is new to having a particular amount of money be it millions it's not right to say that they are financially stable at that point because they are not really stable until they have something that generates or gives them income. The more you spend money and not having something that replaces it then you might end up being broke after sometime.

[Leahized]

I agree with that statement, no matter how much you think you have in your bank account it's always going to be fleeting but it is actually your investment that makes you wealthy. This is why when a person is new to having a particular amount of money be it millions it's not right to say that they are financially stable at that point because they are not really stable until they have something that generates or gives them income. The more you spend money and not having something that replaces it then you might end up being broke after sometime.

Many may be confused reading your comment and some misrepresentations are made here. First of all keeping money in the bank is never temporary, even if the value of money decreases during inflation, money does not run out. If a person wants to improve economically, it is necessary to have a stable source of income. It could be his job and through it he can save money. And spending money doesn't mean going broke, we all save money to improve in life and spend that money in everyday life. And if one has no source of income, then there is no possibility of spending his money.