Is saving money a good thing? Most people would say yes, and many will wonder why you are asking such a stupid question. Saving money is essential for building wealth and protecting us from catastrophe. But as with all things, nothing in life can be defined in absolutes. Even the act of saving money can be detrimental under some circumstances. How is this so?
The value of money to you in the present will not be the same as its value in the future. We all know the concept of compound interest and how powerful it is for growing your wealth. For compounding to take full effect, it needs time, and a lot of it. We are encouraged to save and invest as early as possible to reap the benefits of compound interest.