You cannot save your way to financial independence.You can accomplish a lot by being smart with your money. You can save a great deal by being frugal and being careful with your expenses. You can reduce and/or eliminate debt.But if all you do is put that saved amount into a savings account, you may not ever reach financial independence. While savings rates are getting higher, they are still well below the current inflation rate which was 7% in the March quarter (ABS.gov.au).Most savings accounts are still in the 2-3% range (you can get higher if you meet certain conditions such as set amount of deposits, or limited time rates).Investing in the stock market however, still delivers a much higher return long term. The ASX200 averaged 9% p.a. (based on last 10 years data).Investment property is slightly lower according to my research (although I’m not an expert in this area). But still much higher than savings accounts.

Happy investing (and saving)!