Where Will the Wealthy’s Fortune Be Kept if It Is Not in a Bank?
People often think that the rich have piles of cash in the bank. But most of the time, they don’t. Everyone with income knows one thing: saving money is the only safe way for you to accumulate wealth. Although this makes sense, if you find yourself spending all your salary every month it may be difficult for you to achieve your financial goals. This is why it is a good idea to save money regularly to increase your wealth over time. Any question is whether you should you put all your money in a savings account? Believe it or not, BigONE thinks this may be the safest way, but it is not necessarily the best way to maximize choice.
When you need funds to pay for unplanned expenses, your bank savings are the best source of emergency funds. But when your emergency funds are in place, the most sensible way is to invest them, to help your savings grow. This is the basic strategy that the rich have always adopted. You will find that the rich usually only deposit a small part of their money in the bank. Instead, they will choose stocks, funds, cryptocurrencies, or real estate to help their assets appreciate in value. If you want to become rich, it makes sense that the rich people are worth learning from.
It is a good habit to keep saving, but also to set aside funds for investment
As a starting point it’s worth noting that the savings account interest rates in all countries worldwide are very poor. Even when the savings account interest rates are higher, the savings rate is still minimal compared to the return you could generate from stocks and funds accounts.
If you deposit the $10,000 into a savings account, with the interest rate at 2%, you will earn $200 per year. But if you invest the $10,000 in a stocks and shares account and receive an average annual rate of return of 7% (a few percentage points lower than the stock market average), you can look to earn $700 per year. But if you invest $10,000 in Bitcoin, according to CoinMarketCap data, with the average annual return rate of Bitcoin of 230%, you can earn $23,000. The investment allows you to make more money year after year and have more money to invest. The return of $23,000 you generate in your cryptocurrency account is money you can reinvest in other words.
Assuming you can invest $300 in cryptocurrency per month, and we set the average annual return on your account to 1/10 of the yearly average return of Bitcoin, at about 20%. This means 20 years later, you will have total assets of approximately $138,000. This is almost double the $72,000 you invested, and you don’t need to worry about the impact of the $300 monthly investment on the rest of your life. The reason you can turn $72,000 into $138,000 is that your investment has received a good return, and you have reinvested the proceeds year after year. In contrast, if you deposit the same money in an ordinary savings account with an interest rate of 2% in the same period, you will receive significantly less profit after the 20 years.
This is precisely the strategy that the rich have always been using, and it also explains why their savings account balance may not be as large as you think. So, if you have extra money and there is no emergency to spend it on, you should consider opening an investment account and buying some stocks or cryptocurrencies. Of course, you can also consider buying real estate, but buying physical assets is much more complicated than investing in stocks and cryptocurrencies. So particularly if you are a novice, BigONE recommends investing in stocks or cryptocurrencies as a better choice.
Of course, one thing you should know is that all investments are risky, and the money you deposit in your savings account will be relatively safe. But in exchange for taking risks, you will get better returns. Therefore, if you want to achieve financial freedom, such an investment strategy is the best choice.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
