You must have been told by your parents and probably some financial 'guru' to save. They must have emphasized the prudence and financial sense of saving for a rainy day I'm sure.

Guess what? They were all wrong!

Why? You ask. Simple.

1. Inflation takes the money and leaves you with the paper! If you diligently save $20 every day to buy a used car that costs $7300, you may find out that after 365 days, the price tag of the car may have actually gone up by 20- 30 percent. You may therefore save in perpetuity to buy that car!

2. It's an awfully slow way of saving money: When you are intent on making extra money by investing in savings (or even deposit accounts), you're in for a shocker. Do you know that the interests on these accounts hardly exceeds 10% for 365 days?? If you ask me, that is an ultra slow way to 'invest' money.

3. You've got no control over your money! When you save money, there is no control over it; external forces determine how much your money is actually worth. If you're intent on investing money, then, saving it is not the best option.

What then is ideal if savings is not? Invest! When you invest money, you are in control, it yields results faster and it's 'inflation proof'. But what constitutes investment? Please continue below...

Source and more: http://notopoverty.com/savers-are-losers-top-reasons-why/