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Explain why a savings account is not a good option for long-term wealth building.
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43 votes
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Explain why a savings account is not a good option for long-term wealth building.

User Siulkilulki
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2 Answers

20 votes
20 votes
A savings account is not a good option for long-term wealth building because if your money is in a traditional savings account, you're probably earning less than inflation, which is how the price of everyday goods increases steadily over time.
User Carlos Mayo
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24 votes
24 votes

Answer:

While you can grow your money daily and take on zero risk with high-yield savings, they are not the best way to grow your wealth long-term. The rate of inflation can be higher than the yield you earn over time, so it's better to not keep piling cash into your savings and instead invest your money.

Step-by-step explanation:

User VLAZ
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