Topic: Why we should prioritize investment over saving - page 13. (Read 2277 times)

Financial planning often involves a delicate dance between saving and investing. While both are crucial for achieving long-term financial security, the optimal approach can vary depending on individual circumstances and risk tolerance.

Savings serve as the foundation for any sound financial plan. They act as a buffer against unforeseen expenses or emergencies, preventing the need for high-interest debt or disruptive sales of investments during market downturns. Aiming to accumulate enough savings to cover at least 3-6 months of essential expenses is generally considered a prudent first step.

Once a robust emergency fund is established, individuals can begin exploring investment opportunities. Investments, like stocks, bonds, or real estate, offer the potential for higher returns compared to traditional savings accounts, but also come with inherent risks. Diversification and a long-term perspective are key to navigating market fluctuations and achieving sustainable growth.

I agree that investment would be a key thing to the survival of the value of your money. It's all about the amount as well in which you are going to save to know the effect of it in the long run. It would be a hard thing to decide where to invest it (but we all know it can be Bitcoin), but it's still best to decide what you won't regret.

Saving and investing are two different things. Investing means that you are putting your funds to work and generate profit at the long run, but saving in your house is just keeping your money idle, without any increase but decrease due to inflation. Saving in the bank is just like you gave them your money to use in business and make good profit out of it but at the end of it, you will be given peanut from the profit that they made, and at the same time your funds will depreciate in value and that is non of their business. It is only through investment that we can secure our future, especially when you invested in gold, bitcoin, and land properties.

How is saving money not good? You still need to save for the raining days from your business or from your paycheck. For instance, If you or a loved one falls sick, you'd use your savings to settle the hospital bills.

So both saving and investment are good but the question is which one do you prioritize, i.e which one would place ahead of the other.

Based on global inflation rate and constant decline in the value of my local fiat against US dollars, I've been investing more than I save in fiat.

The rich people do invest their money and if they are saving, it's too far and quite little compared to their investments. They understand how inflation works and how investing will save them at times of these rising inflation rates. While they're doing a not so secret strategy, we as plebs should also do the same as them. Some techniques might not work for us but we just have to go with the same path as they did and that's investing to anything they know of and for us, it's with Bitcoin, real estate, gold, etc.

If you can't manage $1K, you will not able to $10K.
If you can't manage $10K, you will not able to $100K.
If you can't manage $100K, you will not able to manage $1M.

Not every people can understand how to manages money because every person come from different background, raised with different culture and different financial situations. Good for you for realizing investment is really important, sooner or later you will become rich.

Even we're know investment is really important, if people don't want to start to invest, don't blame them.

If you are not sure that you are ready to invest, or have not yet decided on the asset you would like to buy, then saving is also not a bad decision. But you are right to note that you should think about inflation. It is not so easy to buy gold or real estate because these investments require you to have a significant capital, with Bitcoin everything is easier, but in this case you need to think about not buying it too expensive, since this asset is too volatile.

Economic inflation is a problem, but its treatment varies according to the definition of the problem. Is inflation caused by financial mismanagement, or by an increase in shipping costs, or by an increase in the costs of services such as gas and electricity, or by geopolitical crises? Depending on the cause, the solutions may be appropriate.
Financial inflation or due to state mismanagement can be solved by investing in foreign currencies, gold and Bitcoin, but in the long term, while real estate may be at the beginning of a financial bubble, it will lead to losses, so without defining the problem, solutions cannot be thought of.

Investment is better than saving since we would earn profit on it, but savings also comes handy since you could use it on emergency.
If you could have both of them why not do it put most of your extra money to your investment and small amount on your savings incase of an emergency.
If you have both of them, then you wouldn't need to take some from your investment when you need some money when someone close to you is sick, needs something to be fixed at your house or something else.

Saving isn't totally a bad idea, especially when we are saving to invest because you must save money before you think of investment in anything be it land, Gold or Bitcoin just as you have mentioned above, it is not encouraging when you save without a reason for investing it or doing business with it and leaving it sitted in your bank account while inflation ripe you off the value overtime, but even as we invest we should have some funds in reserve for emergency or for unprecedented events.

Saving money is not good at all as this will make your money ideal which won't do anything for you except lose its value and PPP. We should put our money and wealth to work so that they can generate more money for us and grow in size themself. Gold and real estate are the safest options anyone can imagine to fight inflation and the newly added bitcoin become widely accessible to the western market through bitcoin ETF which is becoming another option for the community.

I have also been saving money for a few years, which I learned when I started earning from my job. In the past, I used to save a specific amount of my hard-earned money in the bank every month, but after a year, the interest I received was less than what I expected. Moreover, the inflation rate was increasing rapidly, which also made me realize that I needed to find a safer way to save money and avoid inflation. That's when I discovered the method of buying stablecoins, at first, I thought of exchanging my fiat money for USD bills but then I realized I can do it virtually. This way, I can save my money without worrying about the impact of inflation.

I learned something after the last bull run (and I believe it's valuable). I had to convert my savings to stablecoin and kept in a private wallet instead of keeping it in a bank during the bear season. As a stablecoin it won't be affected by inflation as fiat in a bank. Then I pull it out and invest in Bitcoin once I perceive a bull rally is around the corner. That way, I gain both ways in global perspective – Inflation free and secondly, investment in Bitcoin. On a local level, giving the type of hyper inflation that's ravaging my country, I gain in three ways – Inflation free, 2, Investment in soaring Bitcoin price and value; 3, My local exchange rate. I suggest people try this out too, especially those in inflation torn countries.

Right. Saving money is good but inflation can slowly erode its value. Investing in things like Bitcoin, land, or gold can be a way to beat inflation and make your money work for you but it really depends on your priorities. These assets have the potential to grow over time, helping your wealth keep up with or even outpace the rising cost of living but it's essential to be aware that investing carries risks and values can fluctuate. We all have different priiorities so learn to not compare yourself

savings should come first.

savings is not about wealth creating in low reward accounts..
saving is just to get a emergency rainy day easy access pot of money to cover incidences.
easy access so that you dont need to run to credit cards and you dont need to cash out investments during a bear market

once you have a savings amount to cover atleast X month of expenses + able to cover any surprise short term event. then stop saving and start using the excess income you were putting into savings to instead start to put into investing.
when you know you have a easy access fund of savings you become more relaxed about investing. knowing you dont need to rush to cash out your investments early. you stop worrying about bear markets or losing your investments because you are not relying on investments to cover emergencies, thus able to invest more long term rather then trying to get rich quick out of fear of your monthly real life costs of living

Agree. You may also take this into consideration that saving is a dead investment aside from being affected to inflation. For me Bitcoin, precious metals and real estate is the best investment here so if your savings is enough for these assets then I highly recommend you considering this choice. All I think is inflation and future proof.

Its not necessary that prioritize investment means you will jot save up money, its still better to have both investments and savings, think of this yes saving money is great and a good practice but the thing is as the days, months or years past by your money from your savings will not grow maybe a little, but compare to investments its better to have something that could give you profit, a lot of profit, if you want a bright future or a life where you can buy everything you want and needs then start being a little ambitious and do investing it will also make you grow in terms of skills and knowledge, in short don't be contented to just what you have, don't settle for less, keep on moving forward to achieve more things in life. It's best to have something to add to your assets or funds while at the same time securing your future by saving money.

The concepts of saving and investment are interconnected.  Some people need to save before they invest because they don't have sufficient funds to invest in a business or product. So for this set of people saving is important. Another aspect is saving for emergencies. This kind of saving could be keeping enough funds that sustain you for three to six months without any form of income.  This type of savings is important for everybody.

Keeping money in the bank might not be the best option for people who live in nations that experience high inflation. This is because such funds will gradually become worthless over time. The best option for them will be to invest these funds in profitable ventures. However, they can decide to save their funds in a more stable currency like the dollar. The dollar is a strong currency that hardly loses value when compared with other currencies. In two years our local currency has lost almost 80% of its value over the dollar. Which entails that people who saved money in dollars made the right decision. 

Both savings and investments has their respective unique roles they play in our daily lives and thoroughly looking at the two factors we can't do without the two, having just one in place is incomplete for anyone in this hard times where inflation keeps soaring and challenging emergencies are always occuring.

When we save we are having a backup to our investment should anything go wrong as the future is not certain and unpredictable it is to the savings you have been making that you will fall back on to revitalize, resuscitate and wage your investment from imminent collapse when things probably go wrong. Yeah, savings may not hold it value at a still due to inflation but it's backup importance/role makes it a necessity never to undermine.

While investment is immensely quintessential to growing the value of our money we should also be careful at what and when we chose to invest our money on as it is possible that we can invest in the right thing at the wrong time and due to this incur losses. Just like bitcoin, right now is a right time to invest as we are still in the dip, but when an investor has to invest at the time the next bitcoin ATH has set in you're said to be investing at the wrong time at that moment.

In conclusion, both investment and savings are crucial and it's dependent on the individual how they go about it and managing the two.

Investing offers the potential for higher returns compared to traditional savings. By prioritising investment you can grow your wealth and achieve long term financial goals such as retirement or purchasing a home. Unlike saving which often earns minimal interest, investing in diverse assets like stocks, bonds, crypto or real estate can generate substantial gains over time. Investment allows for the compounding of returns meaning earnings can be reinvested to generate even more income. While saving is important for emergencies & short term needs, prioritising investment can help you build wealth & secure your financial future.