Saving vs investment, which one are you practicing?

[dollarAngel]

I consider them both. But there are people like me who can't save because of my mentality. So I do investment and business.

 

[Jasmine]

I save to invest. let me explain. I received $20 for a marketing offer from my client on my paypal. This is very small amount to invest in anything. I will have to continue working further and earn more money so that I can have $100. If I have $100, I can use this money to buy shares. Therefore, in my opinion before you can invest, you need to save money. However, for some people who already have money, this might not be necessary as they can invest right away. For most people saving is the first step to invest.

 

[Caramelle]

I'm saving and investing at the same time. Saving money is important because we have to prepare for life's emergencies. We can't expect things to be ideal all the time so we need to have liquid assets that are easily accessible when we need them. However, it's not ideal to keep all of our excess funds in a savings account. We can keep an amount equivalent to six months or even 1 year of expenses into an emergency fund before we start investing. That will help ensure that we do not turn to debt when we lose our job or source of income. After that, we can confidently start investing. At this stage, I am investing in low-risk securities like treasury bills and in a savings program operated by a government housing agency that offers several times the return I can get from savings funds. I'm a conservative investor.

 

[Deleted member 28127]

Saving means you are risk-free however investing means you could lose most of your funds within a short time frame means investors are few skilled people compared to money savers.

 

[Good-Guy]

Saving means you are risk-free however investing means you could lose most of your funds within a short time frame means investors are few skilled people compared to money savers.

Obviously, investing money is quite risky. However, you may not depend entirely on savings if you do not have a good planning for the future. You must need to start a businesses or invest money as soon as you start saving enough money. There are many people who are afraid to invest money and prefer to save money for future. However, the fact of the matter is that capital is such kind of asset that only reduces in value. Money itself does not have any value due to an increase in the inflation rate.

This is why there are many financial experts who emphasize a lot on investing money in order to grow wealth so that it could catch up with growing inflation rate in the world. The overall economy of the world is poor. This is why it is very important to invest money in some useful business such as real estate so that the value of your property grows with inflation. This is the best investment strategy I could recommend people. Through this way, your capital is also safe in the form of fixed asset (i.e. property) and you can also generate income by renting out your property.