Saving money for savings sake is a very attractive idea for building wealth, but it’s not something you would brag about to your friends. In fact, you don’t have to boast about saving money to anyone.
Bragging to Your Friends
On the other hand, when it comes to great investments, some people gloat to their friends. Most of the stories involve making great decisions about investments, sometimes speculations. They make for great stories.
“I invested in Google at IPO a long time ago.”
“Back in 2009, I bought a little bit of Bitcoin and now it’s worth a fortune.”
“Of course I purchased Nvidia 5 years ago, I knew it was going to be a home run.”
If you’ve made any of these investments, that’s awesome. If you haven’t, don’t worry about it.
Saving Cash
In comparison, telling your friends that you “Saved 20% of my income this year,” is not as powerful of a story. It’s so boring! In fact, the only person that may be proud of this is your grandmother. You can also tell her that you sit up straight, eat your vegetables, and go to bed early every night.
But your grandmother is a wealth of wisdom and just about everything she tells you about life turns out to be true. Although seemingly boring now, saving money will be a very attractive story for the long run.
The Secret to Getting Wealthy
Here’s the secret. Saving money is the biggest driver that will move the needle. There are many ways to save – 401(k), IRA’s, Investment Accounts, etc. When you save ample amounts of money, invest the money appropriately, and manage your tax situation, increasing the amount of money you have is straightforward.
It takes time – years, decades, maybe a lifetime, but it’s worth it.
Making great investments is wonderful, but the foundation of wealth starts with the amount of money you save. In the end, it’s a very compelling story.