One of the first pieces of financial advice many people hear growing up is Ben Franklin's adage "A penny saved is a penny earned."
But if you're focused solely on saving, you're missing out on an opportunity to grow wealth. "Nobody ever got rich just by saving money," self-made millionaire and early retiree Steve Adcock recently told Grow.
The proven strategy: investing.
Investing lets you 'increase the buying power of your money'
Make no mistake, it's important to both save and invest. Each has an important role to play.
Saving is key for short-term goals: You won't earn much, but you aren't at risk to lose that cash, either. And it's easy to access in an emergency.
"This year, with all the turbulence surrounding the coronavirus, unfortunately too many people are seeing how important it is to have an emergency reserve," says Neal Solomon, managing director of WealthPro LLC in Gloversville, New York.
However, he says, "what savings accounts are not good for is building long-term wealth." The reason for that is inflation, or the broad increase in prices that reduce the purchasing power of your money.
One of the first pieces of financial advice many people hear growing up is Ben Franklin's adage "A penny saved is a penny earned."
But if you're focused solely on saving, you're missing out on an opportunity to grow wealth. "Nobody ever got rich just by saving money," self-made millionaire and early retiree Steve Adcock recently told Grow.
The proven strategy: investing.
Investing lets you 'increase the buying power of your money' Make no mistake, it's important to both save and invest. Each has an important role to play.
Saving is key for short-term goals: You won't earn much, but you aren't at risk to lose that cash, either. And it's easy to access in an emergency.
"This year, with all the turbulence surrounding the coronavirus, unfortunately too many people are seeing how important it is to have an emergency reserve," says Neal Solomon, managing director of WealthPro LLC in Gloversville, New York.
However, he says, "what savings accounts are not good for is building long-term wealth." The reason for that is inflation, or the broad increase in prices that reduce the purchasing power of your money.