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.

[Queentoshi]

I suppose many people atp have already realized that Salary alone can’t make you rich not to talk of even being wealthy. As you’ve already mentioned before… it’s really important for a working class/salary earning person to invest in something they trust and can hold on to rather than just “save up” the money and think they’ll become rich by saving money.

money saved in the bank is often rereferred to as money spent later. this is why it is important to not just save but also to invest for future purposes, money kept in the bank yields no interest making it vulnerable to inflation but investing puts you in a position where you get returns for your investment making it easy for you even in inflation. it is wise to invest because when investing your money grows, it doesn't stay stagnant and accumulates wealth over time. this way you are set for life and wouldn't have to worry about money rather than just keeping it in the bank.

Whist it is very important to invest you should also keep in mind that investing requires a certain amount of studying and learning the market you want to invest in, because not all investment decisions accumulates wealth, some depreciates over time.

[Alpha Marine]

What is people's obsession with being wealthy? There is a very good chance you would never be wealthy, so I don't understand why we always talk about "salary alone cannot make you wealthy". Even a business and investments may not make you wealthy. Do you think your $1k dollar investment is what is going to make you wealthy?
Don't get me wrong, it's okay to be ambitious, and it's better to invest than to leave money in a bank account, but that doesn't mean you would be wealthy.
To be wealthy, you need to create a solution to a problem. You need to create services or products that are valuable. Services that people will spend a lot of money to acquire.

People here talk as if once you invest, you would become wealthy.
Less than 2% of the world has a net worth of $1 million dollars, so making wealth is not that easy. 76% of the world's wealth is controlled by the top 10% earners.
If your goal is to be wealthy, then go out there and do something that will make you wealthy. Stop talking down to salary earners and whatever it is you people do here.

[AmaGold70]

Although investment is good thing to do but at the time being it may not be the best idea to get near certain markets. One of them is the stock market. Due to the increasing global economic uncertainty, the businesses are going to have to face lot of challenges in the near future. That means the stock market becomes so much risker to enter. Specially for those who don't have any experience reading the market.

This highlights something very important for investment: experience.
Anyone wanting to make an investment and be successful in it, has to have a lot of experience. To know which market is good to enter, which to stay away. When to enter and when to exit. and so on...
In other words just making an investment doesn't make anyone wealthy. Investing wisely does.

Investment can make people rich more especially on the long run, but however it is important for someone to understand the type of the investment you are going into.
When you go into an investment you don't have full understand, you might likely make a drastic mistake that cost you huge amount of your money. Like in the case of investing in bitcoin or stock market, you should be able to understand how the bitcoin market works before you become very successful, otherwise fear in bear market can make you sell your asset at lost. Thesame thing goes to the stock market, both stock , and bitcoin rewards investors on the long run, and investing in new stock carries very high level of risk, in the sense that some new stock can crash to zero, and when significant amount of money is being invested, and the stock eventually goes down to zero, you will incure total loss.
Investment makes you rich, but don't invest ignorantly, invest with informed knowledge, and wealth will come thereafter.

[Halifat]

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.

I think what he was trying to explain his that, we should not allow our self to be deceived by keeping our money in the bank alone, and once we decided not to invest it, that is when we use all the money and went broke. With what I understand, this is what he was trying to explain. When we talk of wealthy people, there were always address as business people. Living your money in the bank does not make someone wealth because it is not being used to generate income, instead you are just busy empowering others meaning the bank itself. So instead of saving in the bank, the best thing is to invest so that it will continue to grow and become wealthy.

[Issa56]

It is necessary to know that , you cannot become a wealthy person earning salary alone. Now there are people who earn good salary, and only depend on their salary to survive, and these set of people hardly become wealthy.

I don’t really know how things work in other part of the world, but people depending on only salary in my country here are just struggling to survive, what they earning isn’t even enough to take care of their needs, so you can’t just be wealthy when you are in my country and you depend on only salary as your only source of income.

You won’t see salary earner’s here in my country driving expensive cars or leaving in a luxury apartment, most of them are always driving average cars, they are middle income earner’s. The only people that leave expensive lifestyle are business owners, politicians, musicians.

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

Money kept in bank will definitely be affected by inflation. Also if you leave your money in bank, it’s going to be reducing because banks are going to charge you for some things like maintenance charges, SMS alert charges, stamp duty charges which is going to be reducing the money you kept in your account.

[yudi09]

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?

Putting money in the bank only earns you the promised interest rate. As a savings account, that’s fine. If you can set aside some of your salary and other income to invest in assets that have the potential to appreciate over the long term by more than the interest rate offered by the bank, that’s even better—and it’s a smart move for building a solid financial foundation for the future. It’s not about getting rich, but about preserving the value of your money.

[Yeesha]

Investment can make people rich more especially on the long run, but however it is important for someone to understand the type of the investment you are going into.
When you go into an investment you don't have full understand, you might likely make a drastic mistake that cost you huge amount of your money. Like in the case of investing in bitcoin or stock market, you should be able to understand how the bitcoin market works before you become very successful, otherwise fear in bear market can make you sell your asset at lost. Thesame thing goes to the stock market, both stock , and bitcoin rewards investors on the long run, and investing in new stock carries very high level of risk, in the sense that some new stock can crash to zero, and when significant amount of money is being invested, and the stock eventually goes down to zero, you will incure total loss.
Investment makes you rich, but don't invest ignorantly, invest with informed knowledge, and wealth will come thereafter.

Understanding is the key in every investment that you want to start, it will open doors to successful investments. Investments can not determine your wealth status, what determines that is choosing the right, suitable, and productive thing that you want to invest in. One of the criteria of investments is proper handling, efficiency, effective management and compliance with all the relevant rules and regulations. Because these will ensure that your investments run smoothly without involving the risk factors. Ensuring this safety measures is very crucial to prevent excessive loss.

[Woodie]

Agreed, a salary alone won't satisfy you financially which is why everyone is encouraged to find other investment avenues for passive income to supplement our needs beyond basic necessities.. and the worst decision would be living money to sit in the bank doing nothing for you, but unfortunately will be used by the banks to give out loans and they will make $$$ out of it. People that have understood the banking system nolonger keep money at a bank, worst case scenario is using financing to beat the tax system legally and this works if interest rates are low.

[noormcs5]

Agreed, a salary alone won't satisfy you financially which is why everyone is encouraged to find other investment avenues for passive income to supplement our needs beyond basic necessities.. and the worst decision would be living money to sit in the bank doing nothing for you, but unfortunately will be used by the banks to give out loans and they will make $$$ out of it. People that have understood the banking system nolonger keep money at a bank, worst case scenario is using financing to beat the tax system legally and this works if interest rates are low.

Yup, Salary can only fulfill your kitchen income and it can never make you wealthy. With Salary, you're stuck in a monthly loop where you feel that you are lucky of getting some grantee income per month but it never help reach financial freedom.

Another mistake that people make is keep money in bank. Bank saving accounts gives you nothing in the name of interest if you compare it with inflation. Maybe you will see the your bank account growing slowly but your purchasing power keeps shrinking. Here also you are losing your money but we have been fooled here too that putting money in bank and getting interest on it is a safe investment 

[Mhizlove]

I agree that salary alone can make it difficult to build serious wealth, most especially when inflation is continuously reducing the purchasing power of money. But for me I don't think that keeping money in the bank is completely a bad thing because emergency funds and accessible savings is still much important. A good way to approach this kind of situation is to work for your income,save part of your income, spend wisely and allow your money to work for you as time goes on. And again investment can also help in building wealth but you still have to understand the risk that comes with it and also avoid putting your money in one place. In the end, patience, consistency with good financial decisions with time, these decisions can also produce the biggest results.

[Sanitough]

We can't say in general OP that investments will make us wealthy because there are actually investments that are only good at the beginning but are not intended for long-term profitability, especially those kind of investments that are seasonal. Investment alone cannot give us sure wealth, but multiple good investments will definitely lead us to accumulate more wealth and become more wealthy in the society.

And sometimes, the most profitable investment is through self-investment first. Invest in your knowledge and skills first, and even in your wealth. Because without all of these, its impossible to succeed on any investment and make you rich in the long run.