Post
Topic
Board Economics
Re: Savings and Investment, and how it can affect standard of living.
by
tottong
on 15/07/2025, 04:00:33 UTC
Well, simply saving in fiat isn't impossible, but it's also true that fiat savings will ultimately result in losses for the saver. Because fiat savings will only depreciate in the long term due to inflation. So, I think saving in fiat is a mistake that should never be made. Except for emergency funds and such. But for future savings, it's not recommended at all. Saving in gold would be better. And it would be even better if we invest like the rich do. Because that way, we can expect growth for a better future, even though there are still risks involved.

People used to consider savings as a source and capital for achieving wealth. In my own country, there's a saying that goes, "Diligent saving is the root of wealth."
This motivation may have led some people to engage in this activity without considering the depreciation of fiat currency savings.
However, the rich don't have this motivation because they diversify their funds across several sectors that can generate income, allowing their money to continue growing even when they're not working.
Emergency funds can be saved in the amount needed so that the use of savings is much more appropriate and almost no one gets rich from savings.