Topic: Save money today so money would save you tomorrow. - page 8. (Read 1613 times)

The one phrase that I can use to qualify this topic is for use to live bellow our means or income, with this method it'll be easier to be able to save money, because if you plan your expenditure based on the income that you get, then it'll be very difficult to have savings. The economic hardship in my country today makes it very difficult for any average income earner to save money, because our currency is devaluing everyday while the prices of goods keeps skyrocketing everyday, to be able to save, the only option that is left for most of us is to drastically cut down on expenses, have a tight budget and be very disciplined to spend within that budget. The savings can be invested in a valuable asset like Bitcoin, which always apreciates in price if held on a long term.

savings is not for the long term future, nor suppose to be for big amounts of years worth of lifestyle. its the short term rescue to avoid the initial panic of a change of circumstance. for small incidents saves you from even needing to touch your investments..

for larger cost incidents, savings give you just enough breathing room to then organise how to expend the investments via making good investment decisions without the initial panic/worry, immediacy. (if big enough incident)

..
the small amount meant for savings wont be big enough for inflation concern. because you can plan in the small 2-5% inflation of a small amount and spread it over the year(0.17%-0.42% a month) to not really dig deep into your funding amount for other things like investments

It's true, it's true that we shouldn't keep the money we have in the bank and if the purpose of saving is to invest, of course this will be better and this will really benefit us when the investment goes well. Yes, if we save the money we have in the bank, of course it won't. profitable for us because the interest given is very little and is not very profitable for us and the bank which receives more profits.

Investing will really benefit us for the future, but if we don't understand investment well and how to make a profit from that investment, it would be better for us to learn first so that we don't experience difficulties when entering into that investment.

I think as of the 21st century, every investment or financial playbook out there encourages saving as a means to take care of you and your family when you can nolonger work because you grow older or retire early ..but the problem with this model is that it does not shield you from inflation, or generally loss of buying power of a currency.

And besides keeping money💰 in a bank is loss of opportunity to grow your bank account as its gaining little to no interest at all while banks themselves  make money off your deposits, which is why business minded people never let it sleep there but invest it in other ventures that can make so cash for you whether big or small profits they can make a huge difference.

not every month
some tenants refuse to pay rent,
some tenants damage the property
some houses require ongoing costs that all combined are above the market rate of rents.
its not a guarantee of perfect profit, just take a look at all the buy-to-rent people now selling-to-dispose of assets due to market downturn and inflation of maintenance costs. interest rates, taxes, state requirements


investments are not meant for the large amount, nor the long term. its small amounts for short term emergency

for instance. lets say you had saved a months incidentals.. then you would stop inputting your income excess into savings. and put the income excess into investments.
if you then had a medical emergency which later came to a huge bill.. instead of panic selling investment assets to pay the large medical bill. usually selling assets at a bad time, thus at a loss.. you would instead arrange a payment plan with the medical institution. by which the payments initially are affordable to use the rescue(savings) to cover 1+ payment. to buffer you and save you from the panic. to then organise peacefully and effectively how to dip into investments to pay down the bill over months.. rather then rash decisions in days of incident


yep savings for short term small needs. investment for long term future needs. dont worry about inflation in regards to savings. the small amount of say $1000 even at 5% inflation is only $50 spread over a year is only $4 a month.. thus not something that will break the bank compared to putting $500 excess initially in savings for a couple months and then $496 excess going into investments per month

Has saving money helped you get rid of your lack of money? Do you only store in cash?

Of course, you should always have a reserve of cash for emergencies, but I don’t think that all your savings should be set aside in cash alone.
   
Thrift is necessary not only for young people, but for all people in general. Especially when the world economy is bursting at the seams and it is unknown what awaits in the near future.

For some, "things that doesn’t really matter" doesn't matter, but for others it is an integral part of everyday life. With the rise in living standards, the list of "things that doesn’t really matter" is only growing.

The money you save today will depreciate tomorrow and become cheaper. It is very not practical to save money for the future in the form of money. The value of money should be converted into something else: something more liquid in the short term, and something less liquid and profitable in the long term.

That's the main idea of saving money. Spend less today so you can spend more tomorrow. That's why people make investments. Spending usually means buying stuff which don't generate any cash flow or capital increase and most of the time, they generate negative cash flow.

-You may go to a fancy restaurant, at the end of the day you only spent a hundred bucks for a good meal. The good news is, you only pay when you eat. That was just an expensive purchase. No cash flow.

-If you buy a fancy car on the other hand, you will be paying for its maintenance and it will cost a lot. It won't be a one time fee too. That's called a liability. It generates a negative cash flow.

-If you buy a real estate and rent it out on the other hand, you will collect payment every month. That's called an asset. It generates a positive cash flow.

Which one of these is the smartest purchase financially?

a- An expensive meal
b- A luxury car
c- A real estate
d- None of them
e- All of them

As a matter of fact, it is not advisable to save a large amount in the bank unless the purpose of your depositing money in them is savings & investment type. The interest you get from the money you put in the bank is very low, so it's okay to save there if it's for an emergency fund or monthly expenses. It's even better if you can find an investment with a good return and can double up your initial money that you've invest, you can take a risk for that.

From what Op has addressed about savings he didn't seem to despite investment but only laying emphasis on the importance of savings and how it could salvage us in an emergency times. Investment is indispensable in this harsh economy where inflation is ravaging and devaluing the proceeds of our efforts but investment can't plays a different role as it can't meet emergency demand but savings can be taken out immediately to solve emergencies as immediately they arise.

So I'll suggest, if the size of your income isn't efficient to start investing from it based on your responsibilities then make room for savings and save as much possible in the little ways you can. If you fall to invest don't fail to save, if possible don't fail to key into the two areas.

I belong to this generation and I can partly confirm this. As always, this doesn't apply to everyone, but it certainly applies to the majority. Today's young generation often thinks in YOLO mode. You only live once. And that's exactly how they deal with money. Why should you do without something today to be better off in 20 years' time? Many people simply can't comprehend that, which is why a lot of money is spent on nonsense today if money is left over.

Right. Knowing how to handle money is like having a superpower in real life. It's about making smart choices like budgeting, saving and investing. Stashing away some cash for a rainy day is like having a financial cushion when unexpected things pop up. Its always a matter of priorities

Saving is always the right thing to do regardless if there’s economic crisis or not since you don’t know what will be your expenses in the future. This is the golden rule of every house hold in my country because poverty is high here. I’m not sure how the first world country does when it regards to savings but it should be the golden rule in general unless you have unlimited source of income that is too much greater for your expenses.

I have a newborn child now that we celebrate her 1st birthday and christening on the same date to save money. This is what I will teach to her when she gets older so that he can learn how to value money.

Bitcoin is a good investment, but any good investment plan requires diversification, otherwise it will be too shaky. You need to expand your investment portfolio as much as your savings allow you to do so. There is no need to be afraid of inflation, if you have good investments, then inflation will work in your favor, so save and invest, it will definitely bring results. And try to avoid a situation where you invest all your savings in one asset...

This kind of thing may have also been implemented by many other people in the past when facing difficult times in conditions of economic crisis with the aim of not having too much difficulty when facing emergency conditions due to the high cost of basic goods in life. But you are also not too late to start doing this, even though some people might say you are a little late in realizing this because money will never be enough and will always run out easily if it is not managed well by the owner himself.

Being thrifty in life by not spending money on many unnecessary things has become an important point since everyone grows up or when they start to bring their own business and family into life. So actually things like that have long been considered important by everyone even though there are still people who haven't done things like that in their own lives for certain reasons that are quite reasonable. But basically this has to be a priority now because major changes in current economic conditions have been quite visible and very real so that some people who do not save or save in their lives will continue to face difficulties in the future.

Savings;its so pointless to think that you can save your way into millions these days.You wake up every morning and your so called savings cannot even afford or cannot be summed up to your needs or upkeep.Saving is obviously meant to cover emergencies and it's not like it can maintain your lifestyle for a lifetime.
 People have a problem with overspending,and they know their income is insufficient to carry out their daily individual responsibilities Financial illiteracy is one of the reasons why people have difficulty with saving and investing money.
  Its not just savings for me,while your saving,also invest.The difference between saving and investing is the risk management and the earning aspects.The outcome  of saving money can be relatively small compared to what you get from the aftermaths of investing.Investing requires a lengthy risk factors while saving bears no risks for once.
  Since the Goal is to make life more comfortable for oneself,its important to be creative,and  put your money into things that will make you more money.

As i quote from the book The Richest Man in Babylon, "Pay Yourself First".

You need to set aside a specific percentage of your income for yourself first before spending to other needs. In my case, I first set aside a certain amount and be committed in it in a monthly basis.  The first goal that I dedicated myself with before was to establish an emergency fund.  (Some say that emergency fund is 24 months equivalent of your monthly expenses, but in my case I saved around 6months worth of my monthly income).  This will help you prepare on rainy days.  In case that you will lose your job or source of income, you have 6months of buffer to find another one. 

After this, you will be more confident to spend your money on other investments like time deposits and bonds/money market.  The more you gather money, the more you will be comfortable to invest on riskier investments because you know that you can recover because you have emergency funds and safer investments even though you lose certain amounts on riskier investments.  Money also earn more money as it accumulates and compound through interests and dividends. 

Overall, we really do not know what will happen in the future and hence beneficial to save to prepare for it (or leave as bequest to the next generation).

As long as your concept of saving differs from the commonly known concept of saving money, I can still grasp your idea of saving. Honestly, I'm not really into living frugally because someone who shops wisely knows better what they need, whereas someone with a saving mindset tends to complicate and limit our wise decisions.

If you're aware that the financial situation in your country isn't great, investing with your savings isn't a bad idea either. Assets that are immune to inflation are always more appealing and make us feel more secure in the future. The key is to plan wisely, not being too frugal and not being extravagant either.

Where do you hide it? In the bank, for example!
Do not save your money, but rather secure it by investing it in projects, no matter how small or large. The important thing is that investment doubles your money, but saving keeps it as it is.

Investing will surely bring your profit unlike with saving, you're just keeping your money without gaining something. But the thing is, saving is also important. You may have investments and could be making profit but what if your investments didn't do well and then an emergency happen. Where will you get money from? You can invest to to earn profit from it, but you can also save at the same time. Start saving even a portion from your profits so when there's an emergency, you wouldn't have to sell your investments or use them since you have other money that you saved for such unexpected events.

With your investments, it can help you to add more money to your savings. But it doesn't mean that if you have investments, you're already secured and won't be needing to save money for the future. Investment involves risks so you can't fully rely to it for your emergency fund. It's still better to have savings even when you already have investments.

Necessary and unnecessary spending need to be segregated first. That eating out every week needs to be reduced to once per month, stop smoking, alcohol and hookers and using public transport or your own cycle instead of a cab might be the first things certain people need to do. These are not necessities of life and can be reduced.

There are more ways to save money too - things can be done for TV shows and movies, but this generation will not remember our times of torrents anymore. I dont promote the idea of piracy but they should learn about it too.

Savings will help in times of emergency, bitcoin may not because your country may not be the lenient few who allowed crypto use, so indeed it is important.