You will agree with me, the best way to save and multiply wealth, more than just making it, has remained a major issue on the front burner in most circles of financial discussions. And we cannot deny that the issue of saving money in cash, or kind has been at the centre of this topic over time. There is always the question of how best to save, not just for saving sake, but to save in the knowledge that it would appreciate over a period of time. It makes no sense to anyone if saving leads to the reduction in the value of what you initially saved.
Hence, we want to set the record straight, when it comes to saving cash, as compared to saving your wealth in acquiring real estate. Let’s look at a couple of the differences, and then leave you to be the judge afterwards.
One appreciates while the other depreciates:
One major feature, and advantage that we all have come to reckon with when it comes to real estate, is that it’s on a continuous increase in value every day. In most cases, the day you acquire a property is the last day it will ever be sold for that price or less. It keeps appreciating every day.
As against saving cash in the bank, it’s an example of one who takes money from you and gives very little, while the other gives so much and take nothing, and the latter, of course, is real estate.
When you save your money in cash, you actually at the end makes others who do business with it richer, while you most likely in an economy like ours do not only remain at the initial level but drops because of the perpetual fluctuations in the money market.
Your fate depends on the performers of some men in suit, versus your fate in your own hand:
In saving your money in cash, you are basically giving your fate to some men and women wearing suit on the floor of the various financial houses, with the hope that they will be disciplined, intelligent enough, and consistently help you set up structures per time around your cash savings that will keep it safe, and secured. But records have shown that in most cases they have done badly, in fact, most financial institution are in business mainly to make money for their stake holders.
While on the other hand, when you buy or rent a property from a reputable real estate agent, keeping it secured and making money from is 100% sure, and most importantly do not need any rocket science to maintain it, unlike the cash in the bank. Real estate is a commodity that is naturally secure and stable.
Global financial behaviour calls the shot for one, while the other one is independent:
One of the biggest heartaches of people with huge cash stored somewhere is the uncertainties that come with currency behaviour in the global market. This has not been cracked by any broker, no matter how smart they might be. It has always been based on predictions, and data analysis, which has failed greatly in time past.
But the real estate business is totally independent of the global market in terms of the negative result. In fact, inflation most time increases the value of a property. In an economy like ours, storing your wealth by acquiring real estate, is the surest way not just to remain steady financially, but to multiply your wealth. The global financial market has no negative effect on a property but only leads to increasing value for the owner in most cases.
One forms only one source of income, while the other provides many streams of income:
Money in the bank is simply money in the bank, nothing more nothing less. The tendency and the potential to convert it to other sources of wealth generation is highly limited.
But on the other hand, a property is amazing in generating various streams of income for you. Property can serve value to people in many forms, from which generate returns for you. You can sell or rent a property, and make returns from it. You can also sublet a property you already occupied temporarily and make income from it.
Also, in terms of getting funds from the bank, which is a major challenge for entrepreneurs. A property is highly valued when presented as a collateral in the request for funds in the bank. Meaning, it’s only in real estate, you can kill two birds with one stone.
One comes with headaches of extra charges, while the only add extra income for you:
One of the biggest complaint, especially in recent times surrounding saving money in the bank is the issue of extra charges that cannot be explained but keeps enlarging the hole in the pocket of those who save their money in cash. In fact, the perception is that most financial institutions come up with various unjustifiable charges just to increase their profit, and meet their target.
Saving cash in the bank compared to acquiring real estate, is a case of setting yourself up for extra charges by the financial houses as against extra income without stress in property business.
On the whole, saving in cash amounts to very little in terms of increase of your wealth, and what it can do for you per time while saving through acquiring real estate is like saving your wealth in perpetually hard currency, whereby the value is always on the increase. However, the decision is still yours to make, and hope you make that which will secure your today and the future for you, in an economy with so many uncertainties. There is no point creating wealth if you lack the capacity to multiply it. The ability to multiply your wealth is what leads to prosperity ultimately.