Ask Leo: if our money can become a liability for us
Our money can become a liability for us when we don't invest it, how can it become a liability, it can be so because any funds in our wallet or bank account that we don't invest, is a liability for us.
keeping money without investment is like a disadvantage for money value, that's why i love hive so much, because hive has an avenue by which users can save their funds and get 20% APR interest rate.
This encourages savings on the platform, and on the other hand, it also helps users to use their funds accurately.
Not only the interest of 20% APR in hive shows the importance of saving.
Delegation is also a great example that encourages saving, when you delegate your stake hive, you get some rewards for your delegation, which is a good savings method that the user used to generate funds.
We all know that the prices of goods are not the same as it where five years ago, now for example if at that time someone had a million naira in their bank without making a fixed deposit or maybe kept the money in house in a piggy bank
So the person decided to withdraw the money, do you think the money would buy the same thing as five years ago?
It would not buy, because things have changed, the prices of goods are not the same, in general, that is to say, the money has lost value because it was not put to good use.
Due to the fact that there was no investment for which the money was used, it now becomes a liability to the owner.
And we say in finance that you as the owner are a debtor of your money, because you keep it in a place without using it to make a profit.
What keeps money going is profit, that's why you see in a business, even if the business owner makes little profit, less than what others in the niche are making, you still see the business owner grow as time passes
A person does not need anything more than time to grow in life, because no matter how small your capital may be in business, as long as you continue to operate in that business, eventually you will reign.
Thanks. See you next time.
Posted Using LeoFinance Beta
Some people thinks that once they keep money in bank, that it is safer there and since they won’t spend it, it won’t have to divide not knowing that without investing on the money we have, it becomes a liability.
It is better to invest in our money than to keep it without yielding any interest for us.
True, it is not good to keep money without Investment, because as prices of goods are going up, the money in the other hand should be making increment so that to also be able to buy the things we want, without Investment of our money, it is a liability.
Thank you for saying this @otuyanancy .