Topic: saving vs investing - minimalism vs frugality (Read 392 times)

personally, I would prioritize both. We know that the benefits of saving are many, in fact it will be very useful in unexpected times, such as needs that we suddenly have to fulfill, and other problems. Besides that, saving has very good benefits for the future. Many people have proven it.
Unfortunately, saving alone is not enough. We have to put aside a few percent of the income we have to invest. This will make us continue to improve our financial situation. In fact, with investment the goal of financial freedom can be fulfilled. However, I think investing without saving is lame. I often find this in people who suddenly need emergency funds, where they are forced to sell their assets because they don't have the savings to meet these emergency needs.

But I know several people who pile up cash they can withdraw immediately with no time delay just for the purpose of hunting down unexpected investment opportunities and I know it did work out for them quite frequently since they know the markets very well that they are operating in. Having cash available right now for assets of an asset class that somebody knows very well with respect to unexpected short-term opportunities can be a good strategy. Not locking up the funds for 2% interest can pay even if somebody foregoes the potential interest for quite some time if an opportunity then arises that saved the buyer 20% of the market price because of sudden fire sales from somebody who is about to go broke.

There are plenty of examples that I know about when people told me they kept plenty of cash in the bank in order to be ready once this or that opportunity pops up out of nowhere. There are certainly financial set ups that could be arranged with banks in other ways, but there are people who operate with cash in the bank they can withdraw any moment. Savings for potential investments in unpredictable opportunities so to say.

too many people.. even in this topic.. keep thinking the only two options is move from extreme spender, no money to save.. to extreme investor put all spare money into investing, have nothing to save

1. by this what i mean is the same person saying all his income goes to spending and nothing left..
2. then says not to save for incidentals but then go to extreme investing to grow money

the issue is by investing every spare penny, you then fear/panic/avoid taking funds out of investments because:
a. investments might be in a bear trap causing losses if sold
b. fear of missing out the next bull
c. imagining the next, next bull in 4-8 years

and so they have no rescue pot in either 1 or 2 nor between the transition from 1 to 2. meaning when surprises happen. they are in trouble. with no spare money in either context

the point of saving is not wealth creation. nor is it to use for luxury spending in a couple months. its to isolate a small pot of money in easy access form. to rescue you so that you are not panicking

its to save you from having to sell investments in bear times. its to save you from using credit in overspending times.
once you have the rescue pot of easy access cash.. THEN put later income spare cash into investments. knowing you dont need to mess with investments when incidents happen

i know people keep thinking they should lock up their rescue pot into investments too. but that is stupid as people then panic by having it locked up and can los more value than inflation, if made to sell at a loss during a bear correction

Financial management is necessary but getting job is not in the hand of an individual because now everyone is in Struggle to find a job but no one can find their desire job due to limited seats. First thing is that if a person has a job then he should manage his salary according to his uses and also think about saving and investment.

Some people have no planning of using money but they rushes towards investment as a result of which their investment remains incomplete and they take out their invested amount for emergency due to lack of financial management. If someone is not able to earn enough money then suitable option is to do part time job as it will gives you extra money for saving and expenses.

if you are using money market/stocks accounts and CD's you are not "saving" you are "investing"

savings are suppose to be the easy access funds where you cant lose money by withdrawing immediately..
investing however has the risk of panic selling at a loss..

so if you need to have money to rescue you from unexpected incidents. save it..
then with other income you get you can invest that knowing you dont need to quick dip into investments. because the savings will save you

if you are wanting to put money aside for later PLANNED events/items later on..  where you are not looking to spend it on emergencies but want to accumulate some increases whilst not spending it. then yes invest it on some short-mid term investment plans, where some accounts lock funds up for 3-6-12months offering X% fixed high yield interest. but these are treated as investments(wealth creation) not savings(rescue funds)

Not all money one puts aside is earmarked for emergencies, just saying.  A person might save for a car, a house, a new dildo, whatever.

The word "saving" has at least two meanings, and why you're equating the meaning equivalent to "saving someone from drowning" is beyond me.  If I put money aside to buy something I can't afford right away and don't want to finance, that isn't saving me from anything except acting with financial stupidity, e.g., paying for that something with a high-interest credit card.

By the way I just wanted to mention that now is a pretty good time to save money if you trust banks/brokerages, because you can find money market funds and CDs that are paying interest rates that beat inflation.  I agree that that's not wealth creation, but at the moment the stock market is sky-high and there's no telling what other investments like bitcoin are going to do.  It's kind of nice to have money on the sidelines earning 5%+, just waiting for good buying opportunities.

Investment decisions should be approached with careful consideration and avoid making hasty choices that could lead to financial hardship. Investing carries risks, and there is possibility of incurring losses. By only investing an amount that you can afford to lose, or by using extra funds specifically designated for investment purposes, you can minimize the potential impact on your overall financial well-being in the event of unfavorable outcomes.

Having a backup plan in place provides a safety net and peace of mind that allows you to navigate unforeseen challenges or setbacks with greater confidence. This could involve setting aside emergency funds or diversifying your investments to spread risk across different assets or sectors. Taking the time to research and educate yourself about various investment opportunities can help you make informed decisions and identify strategies that align with your financial goals and risk tolerance.

A matter of choosing which is consistent and which is convenient. Saving is for sure speaks for consistency and assurance that you will have an amount to use in times of emergencies. However, investment is with convenience, in particular with making the value or worth of an amount bigger than what you have alloted and also over time. Difference is with the presence of risk. Now, everyone has a choice; some people find it better to have savings than to engage with investments and to some is the opposite. Both would work well if things are planned. Again, both are good but depends on how the individual will make things work. Some people are into savings but cannot manage preserving the amount because of circumstances or just personal wants. With investments, some people are not minding the risk or often disregarding the possibility of loss.

That's true, which is why it is always advisable to have a backup plan in place before investing your money. Don't make hasty decisions without careful consideration. Only invest an amount that you can afford to lose, or invest only if you have extra funds available to cover any potential losses you may incur during your initial investment.

To be honest, I don't think it's necessarily a dilemma. I try to have a bit of savings in fiat for emergencies, and I agree that doesn't require accumulation over a long period of time, but then I also try to treat and accumulate BTC as savings, actually. So I try to set some BTC aside, but I do use those funds when I need to (or even when I just want to do something special that requires more spending that usual), so it's not exactly like hodling, but more like a non-fiat savings account with a bonus of long-term appreciation of value.

frugalism is surviving on the cheapest things or going without

minimalism is deciding whats important that brings long term benefit and worth the expense as it brings good vibes to your life if planned and positioned to maximise its effect, and cut out the other stuff that is not worthy of being in your life

Frugalist and minimalist lifestyle to me is pretty much the same, they both are cutting their ties to earthly desires and seek less amount of things to clutter their home, so I have a hard time finding their difference, maybe if we're talking about minimalism versus miser then that's a more apt fight because they've both have a difference that's striking.

When it comes to savings versus investing, I'd rather go for the investing because that way even if there's risk, my money will grow and in my opinion, investing is the evolved version of saving because you're not just letting your money stagnate on a piggy bank somewhere, you're making it work for you so you can reap the profits and still have some money left that's still saved and can still be used for emergencies.

Investing is indeed more profitable than saving, but we also have to know the risks, saving has almost no risk, but investing has very big risks, but it will all be worth it with all the possible benefits that can be obtained.

Of course, when compared, investment is much better, but we also have to study it before deciding to invest in order to minimize risk.
There are many things that need to be prepared before deciding to invest and these steps will determine the investment we make.

Investing is not as easy as imagined, we have to study it first to know the advantages and disadvantages or risks. In general, investing is more profitable than saving, but it also carries greater risks, until the capital runs out. Therefore, risk management is required for investing. However, saving is also not worse than a consumptive lifestyle, considering that the money will run out without a trace. Therefore, as a young person, don't be lazy about learning about investing

that only happened with investment that has significant risk though but with investment like buying gold or something of lesser risk no need to be cautious whether we gonna lose money after all we won't and even if it did its because the value of that commodity is getting down and we don't lost that much amount of money anyway.
just like bank deposits there's reason why they are so small in apy because the investment itself is quite secure, its just that people don't really like it because the interest only enough to cover for inflation.
but for investment like crypto that are quite volatile, and also quite risky but also have significant APY and easily make profit out of it it does make sense indeed to think about the strategy and only use money we can afford to lose.

I can't believe that there are people that are taking it more than the literal of living life frugally. I know that because I've been living frugally but I don't forget to give some rewards to myself if I think that it's fine in doing so and it's not going to constraint any of my budget. But I just can't those people that are coming to their terms that they live frugally in a sense that they're affecting their health, mental, physical and any other concerning matters. Because I think that I've watched a family that have been using the same water for the one that they swam on and for using the dishes.

I agree but there are people that can't just take risks and have their investments even if you have told them that we all have to take risk for us to gain something.

It's part of life; in fact, it's better to take risks in an investment or business than to do nothing. At least you have the chance to change everything in your life, but when the bad part happens, it's up to you to decide how you will cope. Will you just be disappointed and sulk forever? Life is a continuous challenge; don't expect that investing in or starting a business will guarantee you a better life. So instead of being disappointed, learn from that experience so the next time you engage in an investment, you know what to do and not do. I get it; it's hurtful and very devastating if you lose money, especially if that is your last money or hard-earned money, but what can we do? We can only move forward and try again. Because if not, then you are wasting your time just to feel disappointed and sulking.

It is not mandatory. However, many people, even those who are not capable, try to invest their little money with the hope of having a better life for their family. Then, if their investment fails, they will be disappointed and lose confidence in investing. This can lead to a negative impact on their future investment decisions.

We won't always be healthy, we won't always be young, and we won't always be able to continue working to earn as much money as we need. There are times when we will just lie in bed sick, and there are times when we are old and weak, so there are times when we no longer have enough strength, energy and ability to continue working and making money. And if this is not prepared right now, then when we are old or when we fall sick it will only be a hassle for other people. So this is where it is important for us to have savings as well as investments, so that at least when we get old or when we fall sick, we won't bother other people too much. Investment is a guarantee for the future, while savings is a guarantee when we are faced with an urgent situation, and savings also function to protect our investments so that they are maintained. Therefore, while you are still young, while you still have health and opportunities, earn as much money as possible and when you are old, let that money work for you through the investments you make.

yep which is why its advisable to have savings first.. to have the easy access rescue pot you dont want to lose to stupid gamble decisions*. as the safety barrier.. to cover the events where money is needed

investments is then the secondary event which to use excess funds, you are less emotional about due to having the savings rescue pot.

you are then less likely to panic when it comes to investments*..

the mindset is if the money you dont spend which you want to invest would have just been spent on frivolous stuff thus a loss anyway, you might as well aim it at investing to potentially increase wealth, still in the knowledge you might also have made bad judgements by spending it before. thus less emotionally attached.

---

i personally think of excess funds as:
money IF used for a luxury car just to show off for others benefit that still ends up turning to rust, just like an inexpensive car does..
money IF used for luxury food.. it would have become a toilet flush the next day, just like home cooked food,
money IF used for luxury homes require higher ongoing maintenance, landscaping, heating, bills, taxes, .. a cosy home is better

so living within your means can keep you from over-extending yourself and avoid incidents and money troubles.

thus i dont panic when investments yo-yo short-mid term. i dont need to touch it short-mid term. because if any real world incidents happen i have the easy access savings to cover that. so i am more free to then invest without the risks/fears.

..
when people decide to go full-anal frugal and live like a hermit crap, delaying living comfortably within means and instead surviving below comfort, below basic means.. they then get emotionally attached to the investments and more likely to make mistakes short-mid term*

*mistakes like still FOMO buying near new ATH, mistakenly thinking the price will "to the moon" forever and never come down

be cautious with your money but not emotional to the point of making mistakes due to excessive greed overtaking rationality, or panic causing you to sell at a loss

Investing should never be mandatory and should only be done with funds you can afford to lose. Especially for highly volatile and risky assets like cryptocurrencies. So I don't think it's a good idea to focus on a monthly plan if the amounts invested are substantial. People doing that should do it as a game of chance, without specific goals. If they win, they must be happy, but if they lose, it shouldn't affect them, they shouldn't have to care about it.

Saving is a must for everyone,it should be a lifestyle/habit because savings is for financial assistance and diligent spending.There's a saying that“Do not save what is left after spending, but spend what is left after saving”.....It's a good financial mindset to track your spendings wisely.

saving is not about making a fortune.. its about having a small rescue package. a small emergency pot
anything else you can accumulate ontop thats not needed in the short term incidents you can put into long term investments

saving should be in easy access cash form.. investments should be in asset form

savings is the easy access pot to save you from having to rush to sell assets or rush to use debt

Yes, some savings are still possible for those who are on a tight budget but saving some bucks every month will not lead to any fortune today. I think that the only solution for those people or families who struggle is to make some savings and instead of collecting bitcoins, they should buy a one-way ticket and fly to Europe. I grew up in a time when that was the only solution for people to survive.
Btw in modern times, the situation is not that difficult. If any family or person wants to improve life, informational technologies, especially programming and UI/UX design, give them the possibility to find a high-paying job online, which will give them the possibility to choose between a minimalist and frugal lifestyle. Once they find a high-paying job, then they should follow your advice to achieve great financial success. Just my two satoshis.

Both investing and saving are very important for the future. Because if you can't save money for yourself at the end of the day, it will cause you pain in the future. When we start earning money, there are many people who get money at the end of the month or at the end of the week and spend as they wish but they don't look into the future. They have no proper knowledge about the resources that may be needed in the future. So along with earning money, it is very important to accumulate some wealth so that it can be put to some use in the future. The next step is to invest in Bitcoin investments or other sectors if you want with whatever is left over from your needs. This will help you in future.

i understand those in poverty, unemployed or poorly paid work cant even afford cars or vacations.. so have less choices.. in regards to minimalism
but as a for instance of minimalism. your family has understood and made the choice that having a cellular device and internet has more long term positives of possible income compared to putting a nicer meal on a plate. no judgement i can understand the merits of such decisions

but even on low income of frugalism, people should still pre-plan the month, before spending on essentials... rather then just unplanned spend on essentials with no money left but plenty of the month left, wondering what happened and what to do

i have visited many countries and seen scenes of what you described, and in many ways far worse
people with what appears to be new sandals, but they purposefully wrapped the soles tread in card or tree bark and used rags as straps to protect the actual sandals from ware and tear. making the sandals last a lifetime, or use plastic shopping bags when wet
i have seen how villages getting free aid rations of rice from charity, killed the market of farming rice.
i have seen how villages getting free aid rations of clothes from charity, killed the market of clothing

i have seen families prepare meals where it says use a cup of rice. and seen the family spoon out a couple spoons from a cup to save a few % to make it stretch out longer. so i am fully aware of super frugalism

yes choices are narrower. but by pre-planning, even that can stretch the money, food to last a few days longer than expected
this is where people then have to get creative about increasing income

and yes increasing income is a different debate which is another category.. separate from the minimalist vs frugal planning concept
when you live in an area where there are buses, where there are shops that sell shoes/clothes. there are opportunities.
heck when you speak with friends and family and speak of the things they wish they could have, even that can be an opportunity. but thats for another category of discussion

Correct, I also adopt this lifestyle.

The biggest mistake that most people suffer in financial management is they only focus about invest in asset. Investment is actually the last step to protect our wealth, the first step is study hard and the second is get high paid jobs or have a business. if you didn't earn enough, you won't able to save money or even invest it.

Minimalism lifestyle is mostly underestimated by a lot people, they need to have a strong mental to receive mocks.

I agree. You've pointed out how minimalism and savings team up for financial freedom by saving money and skipping the unnecessary splurges. Whether you're into short-term gains or long-term wealth, it's all about what suits your vibe like saving or spending. Making a personal financial strategy that vibes with your ideals is keys and flexibility is the name of the game, letting you tweak things to fit your unique situation

I like your advice, it explains everything in detail with its pros and cons about why we should save some part of our money and why should we invest another part. I completely agree with you on that part but in the last part, you touch lifestyle and I want to remind you that it doesn't apply to individuals that struggle.

When you are from a poor country and try to save some money, you simply have to eat cheap food like rice, buckwheat, bread, potato, pasta, use low-quality oil, etc... You simply have to sacrifice your health for a while which you'll have to pay later. When you are poor, not only luxury cars but even cars don't exist and to save some money, you have to use the bus less, go out less, buy second-hand clothes. When you live in a poor country, you already have to buy shoes that will last you for centuries. So, for people from poor countries, to save some money, you have to be super frugal, live under a rock like you described.
If someone is capable of affording what you described, then that person is rich and probably doesn't really need to save something, that is the lifestyle that poor people want to achieve.

but the point is organising your finances before you spend it. literally give your money a target so you know where your money goes at the start of the month, and not just realising at the end of the month the money is gone and wonder where it went..

by categorising your money. giving each cent/penny a name/reason/target/goal. then helps you stay within your means. before you spend it
if you have no medical insurance or if government doesnt do public healthcare. then you plan for that.
if at start of month you know its your girlfriends birthday or its valentine season. you plan for it.
you then put money aside to rescue you for the unplanned. to avoid needing to take debt/sell assets at a loss.
if you have medical costs. you dont use a credit card or sell a house or sel bitcoin at a loss.. instead you request a medical payment plan and fit it into your budget


not many people "want to" but its the choice..
do you want to push the status you are in down the road never improving by doing nothing.. getting into debt spending lavishly on things you dont need. or do you prioritise your needs to make the most of your money.
EG this does mean if branded clothing does bring you long lasting happiness. but it doesnt matter where you go on vacation. then you minimise the vacation expense and prioritise the clothing budget to get the best result

its about organising your finances to give your money a goal/target that achieves actual long term progress of happiness, rather then wasteful regret

Unfortunately even you save 500, there's a chance if you sick and need to visit a doctor, it's not enough to pay your medical bills. Not to mention your parents might ask you for money because your family need it, your girlfriend asking for a present etc.

Not many people want to live in minimalism because they live in a society where people around them wear a branded cloth, they will bully people who're not wear a branded cloth or something like that.

I agree that savings as a rescue fund serve as a safety net for unexpected expenses and emergencies, allowing for better financial decisions even in challenging times.

I think it embodies the core principles of minimalism, conscious spending, and avoiding wastefulness. It's not just about opting for the cheapest option but making purposeful decisions that contribute to a meaningful and clutter-free life.

The line between minimalism and frugality can be blurry, it often boils down to motivation. Minimalists focus on living with less to simplify their lives and reduce stress, while frugal people aim to save money and minimize waste.

There is still a lot of people that understands saving will help them make rich. But no, that's not how it goes with saving. It's only good when you are trying to save for emergencies or anticipating things to come unexpectedly. Still, it's one of the good practices that a person can have but saving to invest is the best approach.

As for minimalism and frugality, I also saw that thought from many that if you're trying to live frugally you'll have to sacrifice the quality of life. No, it's not how it goes. Living frugally means like simple living and removing those expenses that you can eliminate because in reality you don't really need them.

The logic there is about buying your needs and not your wants. But if you have a spare, you can spoil yourself sometimes.

Good point especially the last one. If we are going to follow all this steps we won't be having any stress along the way to success. The reason why poor people remain poor at the end of the day is because they don't care about these things. I also found these following reasons on google helpful so maybe it's worth sharing.

Savings could really have that different purpose

1. Rainy days
2. Investment
3. Impulsive Wants
4. Sudden Needs
etc....

The main question is, Would you do able to save up at least 25%? No we wont.. For sure on the time that we've seen
that we do have such excess then pretty sure you would really be spending it out on a night party or having those leisure activities yet
you would really be having in mind that you could earn it on the next month.

Saving thing sounds basic but doing the actual thing is something challenging. It is really just that impossible
that you wont really be wary in making decisions which one is worth and which one is not.

minimalism is not about cheapest.. you are right. minimalism is about conscious spending on meaningful things and avoiding spending on meaningless stuff
frugalism is about cheapest

a good example of the difference is
frugalism would be cheapest one ply paper bought in bulk to save via bulk discount, stocking up rolls in every corner/cabinet of the bathroom..
minimalist would have a toilet with built in bidet.. to not need to clutter or continually buy toilet paper, thus save on toilet paper and also plumber visits of clogged sewers

There is a very fine line between minimalism and frugality, a line which can sometimes get blurry in fact. Take toilet paper as another example, sometimes it is not wise to go for the cheapest option when it comes to the basics, even if it does the job - if you have the money it can be wise to upgrade to a reasonable standard. I'd say minimalism should be defined as a different topic entirely, because you can be minimalist but still a lavish spender. I think it's definitely important not to be wasteful with your resources and too many people fill their homes with unnecessary junk, buying the latest gadgets (on finance even) which they might use a couple times then sling in the back of a cupboard, but this is the society we live in that constantly bombards us that we need these "essential" things in our life.

no
savings is not about saving for things we want..
savings should be for the things you need.

both saving and minimalism is about purposefully adjusting your views to concentrate on the things you NEED
that is not to say people need to live without a vacation.. its more about concentrating on the fact that for sanity sake when you NEED a vacation to rest and rejuvenate and break the insanity spiral of non-stop work
you make the best judgements. not waste it on things that dont bring you long term happiness, recovery of energy and sanity

if you are just going on vacation because you want to for one week a quarter, try to organise vacation for when you need to 2week each 6month. make the most of time off to help you rejuvenate and have great experiences

or the opposite. if you dont want 1 week per quarter/2week per 6month. but NEED a extended weekend break to recover from stressful work every couple months. then plan what you need

still have your extended breaks/vacation just choose wiser about expense, experience and time utilisation

for instance
out of all vacations/extended weekends you have ever had, which one gave you the best memory and rejuvenated you, freshened your energy levels to make you feel happy to go back to work after the vacation.. vs which vacation was a huge waste (where after going to vagas losing on the slots), you came back to work more stressed, feel guilty about spending and upset about what happened on vacation

most people then work out the most cost effective experience, within budget that does not leave them feeling guilty of spending after and has rejuvenated them


people that purposefully budget. stop relying on 6 credit cards and instead start developing a savings pot for emergencies so they can cut up the credit cards.

they also look at the most expensive devices/gadgets/appliances in their homes and look at the warranties/expected life span of appliances. and then budget that too
EG a #400 computer lasts maybe 5 years so they budget an amount of #7 a month (#7*60month=#420) thus getting a computer upgrade when old one fails is not a sudden #400 emergency. but an unnoticeable #7 planned expense that eventually will be needed

thus saves you needing a credit card or 'pay later' retail loan
thus saves you needing to sell investments at a bad time at a loss to pay for the computer

To be honest, minimalism and savings appear to be nearly identical; they allow us to save for things we want more than we need, although simplicity can provide us with so-called financial freedom. .by conserving money and avoiding unnecessary expenses.
So, what are our financial goals or targets? Short- or long-term investment? So, what do we do with the money? Saver or spender?

But in this discussion We can build a financial strategy that is consistent with our ideals. Let us merely remember that we can modify these concepts to match our own problems.

In our world, it's expected you multiply whatever seed or gift you got rather than dump it somewhere where it doesn't grow. If you are fond of hiding your seeds than using them for profitable businesses you might end up not getting more and the one you hid would be taken from you and given to a productive person to multiply.

If you must put money in physical piggybank, better to do that with a physical currency that will appreciate in value in the future. If you have done your homework and believe the dollar will appreciated in few months time then sell the currency that will likely depreciate in value  and get yourself some physical US dollar . But the best remains investing whatever money you have in profitable problem solving investments.

I remember discouraging someone from saving with no experience, and I gave this example: if she was saving for 3 to 4 months for a product that was worth #20 (when she started saving) and in the 4th months the price of the product increase by let say 30%, did she gain or lose? her answer was lose. I told her putting money in piggy isn't for the rich... She has alot to learn.

Good topic, and useful. All of the following is from personal experience It's very simple, here are 3 steps to achieve your goals
1. saving everything and everywhere is a bad way. The good way is balanced, reasonable consumption
2. Analyze your spending, choose those that are really "empty", convert them into investments. To do this, keep a record of income, expenses and cost items.
3. If the income is still "eaten up" and there is no opportunity to save/invest - look for an additional/new channel of income.

And remember - if by old age we do not provide ourselves a quality existence (savings + passive income) - no one will provide it for us!

I like how you cleared out the concept of minimalism and frugality. Many people think that in order to have some money for savings or investing, you have to literally deprive yourself of pleasure and other good things in life. You just have to keep things at the minimum and only spend on what you need to spend. I started doing this a couple of years back and my financial state is in a much better state now, able to afford a lot of things but choosing not to because I'm focused on building up my investments for my early retirement.

It might be different with individuals who are providing for their family, but eventually they will have the capacity to save at least a little of what they're taking home from their salaries and start from there.

savings infers the word to save(rescue).. so only think of savings as the rescue fund. not the wealth creation fund. then it allows you to then treat savings as the small pot of money for rescue, and when you have that rescue buffer to save you in dire times. you can then stop funding the rescue fund and start investing the income excess excess

as for starting a business. no one on low income should jump big. always start low, test the waters and grow with prosperity
EG
if you want to cook food and serve it. dont envision needing $200k to buy a restaurant. start small, test recipes, see if the local populous even demands what you have to offer.  offer food delivery from a "ghost kitchen"(your own home that links to uber eats for delivery only)
have a food stand at a country market or street market. gain a loyal customer base then expand using the profits

to many have the luxury maximalist mindset of wanting to open a 5 star restaurant as first foot into the industry

truly plan your money. the minimalist way first. do you really need a fully furnished $200k restaurant lease before you have even let anyone taste your food to test your recipes. or could you start small.. perfect your offering. then expand

While I agree that savings is a must, I don't think savings is only designed for the rainy days. Savings could actually be the necessary start for investment. To many people, investment is a luxury they cannot afford. But they can actually regularly save little by little until it gets significant enough to be invested on a small business or whatever.

Also, saving has become a short-term thing because we have a kind of money that is not worth keeping across time. The current monetary system makes long-term saving pointless. However, it could be possible with a different currency. Bitcoin, for example, might make saving even inter-generational.

I'm with you on the minimalist lifestyle.

in many economic topics of this forum i see many people have misconceptions..

saving vs investing
many quote how savings should be avoided and people should throw every penny into investing due to inflation.. where investing earns more
let me clarify

saving is not a long term thing. not a wealth creation thing.
saving is a temporary play to only save a small amount to literally SAVE people from incidents of rainy day, emergencies where they need quick access to money. to literally SAVE you from having to resort to selling investments at a loss or using debt in an emergency.
you are not suppose to put all wealth into savings,

the gameplay is simple.
if you income is say 2000units of any currency(denomination is not important its just a demo)
and say
housing was 800 (40%)
groceries was 400 (20%)
bills was 300(15%)
leaves you with 500(25%) of excess

for 3 months save the 500 to get a rainy day savings pot to cover a month of bills and essentials
then after that put 500 into investing. knowing if your salary doesnt arrive on time or you lose a job and takes you a month to find ANY other job/start getting social security(unemployment). you dont then need to extract investments or use credit cards/debt. because the savings will save you

as for the inflation concern. a 4% inflation devalue of 1500 is only 60. by which any time over the year you can add in 60 to top up savings to equate to next years rate of bills
EG
5 a month of the 500 excess goes to savings to keep savings at a rate adjacent to rising bills cost. so you can still invest 495 until you get a salary pay rise that the counters the depletion
so the fears and misquotes of people suggesting not to save at all and throw everything into investment are not as well guided as they seemed
saving will save you from investing badly and save you from panicking in dire times to not need to sell investments at a loss,
in short savings will save you

minimalism vs frugality
alot of people think to save/invest requires being super frugal, live under a rock like a hermit and never spend. this is not the case
instead develop a minimalist lifestyle.
decide what actually important to your life. what things serve a purpose/function, gives lasting memories.. and spend wisely.
do you need all the clutter of dozens of branded shoes, clothing, household luxuries/decorations.
or can you find the minimalist unbranded options that serve a regular function to only need a couple items

develop it further. do you really need the lavish new luxury car, or just a minimal model that gets you from A to B
do you really need to pay premium transport, carry 5 luggage bags charging extra at airport, containing every item of clothing and gadget your house had. and then sitting in first class on a plane... or can you just put a weeks worth of underwear and shirts/pants into one bag and sit in economy.

frugality of hermit crab living can be a short term aid. but at somepoint going super frugal fails itself because living on "survival" mode too long is a mental break that cant last. the stress of surviving and not living will become its own downfall which usually ends up with people splurging in excess to get that feel good feeling to regain sanity.
so instead be wise about your spending. note wasteful. make purposeful decisions on things that make your life have good long term feelings/memories. and cut out on the wasteful stuff you usually dont care about a week after purchase