Saving is not Enough to Secure Your Future

Saving has become one of the basic pillars of modern societies.

Photo by Mathieu Stern on Unsplash

Saving is the basis for good financial health. It is the first step to secure your future, but it may not be enough for that future to be the way you want it to be.

“There is a limit to how much you can save, but there is no limit to how much more money you can make,” says Richard Edgerly

Saving is necessary, but saving will only serve to cover part of your path towards the retirement you dream of and the moment you want it to arrive.

Saving itself has two very clear limits :

1. There is a maximum amount of expenses that you can reduce and others that you can never eliminate, such as electricity.
2. Saving by itself is not the most effective in the long term: it will go as far as your ability to reduce your expenses.

So that you understand it better, if you are able to save 150 euros every month for 35 years, at the end of that period you will have accumulated 45,000 euros, neither more nor less. It really is that? Only in nominal terms. In real terms, they may not even reach that number.

Do you want to know why? The answer lies in inflation, one of the two reasons why just saving and doing it in…