Advantages and disadvantages of saving money?

Answer 1

If you save it in an account, you can gain interest. Conversely, if you save it in a bank, you run the risk of the bank folding, fraud, scams, hacking, etc. On a more philosophical level, you can save for a "rainy day" that may never come and you could have enjoyed the money. There is a balance. You need to save money for repairs to your home or car, unexpected events, retirement, and for fun things such as vacations. It's always a good idea to have an emergency fund of at least 3 to 6 months' salary. On the other hand, you don't want to be so miserly that you save too much money and don't enjoy life.