Topic: Why we should prioritize investment over saving - page 2. (Read 2257 times)

Yes, they're already on their stage of life that they are going to be dependent to their life savings, benefits, pensions and if they've got businesses and other passive incomes. That's why they can no longer take risk and if they've done when they're younger, that's good. But if they're only going to be dependent on some things, the benefits that they can get from government is also a good one that they can have on. However, relying to those is hard when cost of everything and living nowadays are keep on increasing.

Although Savings is the best to play but the thing is that many of countries are suffering from inflation which in result our hardly saved amount also losing its value over the passage of time that is why we should also focus on making some investments. If luck goes in our favor we will see a good amount of profit in our accounts but if luck does not go in our favor we can lose our invested amount as well we should never ever invest our all the saved amount only at once because I already said if luck will not go in our favor we will lose all the saved amount we have.

The best solution is that we should invest some part of our saved amount and if we lose it we still have another part of our saved amount. The risk of losing all the funds at once will be reduced well the best thing to play before these kinds of actions one should keep in mind that risk management is the most important part to play safely.

The reality is that prioritizing saving or investing is not wrong. it's just a choice for each person, because everyone has different plans. It's just me, the thing that needs to be done is to keep doing both.
It's not wrong for people to prioritize saving. That may be because he feels that the investments he has made are sufficient, or perhaps a percentage of the income he earns goes towards saving rather than investing. But on the other hand, focusing on investing is also not wrong.
Personally, I tend to focus more on investing than saving because I am focused on creating financial freedom. Where the income I get from investments and business can be more than the expenses I make. This will certainly increase the amount of savings I have when my investment is successful. However, I still save, although not as much as I invest.

Of course, investment is very much better than saving, especially during this crucial era of inflation. Saving in this time is very risky due to world wide inflation. When you engage in savings, you don't expect increments or profits from your savings but in time of investment there is a very much possibility of gaining at the end. The only factor to consider is, one should be careful on the kind of business to invest in. Also to be able to at least master the business and how and when it inflate and deflate.
And also, the money you want to use to invest shouldn't be the one that would be used very soon.




Yes, investment should be given priority over savings, you can also save in case of unforeseen circumstances that might come up suddenly. but in time of profits, investment is number one.  in investment, you should be cautious of the damages and risks involved in the business you are trying to invest in.

Investment is true to pursue profits but what about the risks faced? Meanwhile, if saving may always be discussed about things that are detrimental even though compared to the risk is very low. So I agree to invest, but of course I don't want to hurry up with an unseen-directed investment purpose, so if I have more money then I will save first. The point is that financial management is very important and of course does not have to mean the same as the others.

According to English or whatever you save, your profit will remain or your capital will remain, so if you invest, you will have to take risk. You have to increase your attitude about investment.  But if you save it or deposit it in a bank, your profit will gradually increase or some profit will come from there.  If you invest that money or you put it on a project, if your project is profitable or palm, you will have profit and possibility, but if there is risk.  It will be possible because if you don't take the risk of the project then your profit will not come in that case.  Everyone has to take risks in business no one can ever achieve success without risk where you have your success over your success.  But whatever you invest depending on yourself or depending on someone is your personal matter but I think that investment is good.

always remember though not to indulge in over risking the investment because i've seen plenty old people that lost their entire life saving due to risky investments, only invest in something that can be guaranteed that it won't make you lose the money because otherwise what's the point you will come out not having any money while being entirely wasting your life when you are still in prime saving for the old age.
life is never that linear, sometime there's some disaster or something that might drain us of our wallet despite us saving as much as we can for better future.

good news so many of younger generation these days investing earlier than the previous generation hoping to turn around that table fighting against the housing price and inflation crisis that always getting worse and worse, hopefully though many of us who eager to invest for betterment of future get the deserved yields.

It is perfectly said and I totally agree with the writer of this article that investment is key if we are to have financial stability because with the rate of inflation on the prices of goods and services money is fast becoming valueless so while you are quitely saving that your money it value on the prices of goods is reducing but if you invest it into one small business no matter how small the business is there will always be return on investment.
In that way  your money is growing rather than reducing

And because human productivity is not always the same, therefore we must be able to think about investing in our future. After we have invested in the future, of course we will be calmer in living our lives and we will be able to enjoy our old age by relaxing with people who we love, because if we don't think about investment when we are still at a productive age, of course we will continue to work to be able to fulfill the needs we need while we are still alive.

Yes of course the elderly cannot or should not take risks in their old age considering the financial risks the propensity to make mistakes and the loss of support. Because human productivity is not always the same in every stage of life. But before getting old we all should be interested in investing keeping in mind all the limitations of old age considering the time and opportunity in the right place and saving some money so that in old age we can enjoy the investment dividends.

savings accounts swing at like 4% a year. -4% inflation +4% bank interest
however investments swing 8%+.. and here is the thing.. the investment swing is not always positive in investments..
so selling out an investment at a bad time can be a investment loss more then 4% loss.. so you dont want to rely on all your funds being in investments

so putting all your savings into a investment can lose you more money when a surprise happens

the point of  savings account is not wealth accumulation.. its a rescue buffer so you dont need to sell investments at a bad time

all you need in savings is initially  a months worth of true lean expenses (bills)
EG a stop gap if unemployed between losing job and getting new jobs first pay cheque or social security unemployment payment

if you have a mortgage. you dont need to fund the full monthly mortgage amount into savings. you can just do the 'interest only amount' and then add in the ESSENTIAL bills and bare/cheap/necessary groceries to feed you basic meals for the month

so first save that small emergency rescue pot of money.. and realise that the small $1k may not gain money, but the amount it loses is minimal too when considering everything..

THEN the next month put your other excess income into investments knowing you can THEN invest from now on without worry or panic of needing to rush to cash out investments.. because the savings pot is there instead. to rescue you and give you a month of peace to not need to react in an instant

Saving fiat experiences high losses if we keep it in the bank for too long because of the main loss impact due to inflation, imagine that $100 currently is enough for food costs for one week but one year from now we will need almost $200 for food costs due to the increase in goods and services, so it's time for us change your mindset to convert savings into investment assets that we are sure can be stable and gain profits for the long term, the main choices are gold and land investment but you also have to allocate some for bitcoin investment when market prices fall significantly because the certainty of the crypto market increase is guaranteed for the long term long.

It's like our end game for this life, we just want to enjoy but if you start to save and invest later, you'll just enjoy it later too. While those that have started too early, that means that they can also enjoy it too but earlier. So you choose what makes you think that you're suitable to enjoy life early but you didn't do necessary actions like buying assets at your early age and when you didn't saved that money of yours but used it for nonsense things.

What do you mean by we can't take it any time we want? Aside ponzi, is there any other investment that you will not be able to take your money when needed? I don't think so. One thing with investment of this type is you might be swimming in a lose if you want to take your money at the wrong time. When you hear invest what you can afford to lose, this is the situation they are talking about. You don't invest with the money you might need for emergency no matter how profitable the investment sounds unless you're ready for the risk ahead.


Reading from OP I see how everyone is speaking about the cons of savings. With no doubt, the value of your savings could decrease without reducing the actual amount saved but are you also aware that in investment, the value of your investment can also decrease drastically without reducing the actual size of the investment? I see both investment and saving as two different entities meant for separate purposes. Everyone can save but not all can invest, it depends on your goals and plans for achieving them.

http://Investment and saving have various advantages and disadvantages. You have a valid point that inflation would be against your savings plan in the long run. This is why there are disadvantages to saving, but rather, you still have the saving, and it could be useful one day to you regardless that the purchasing power has reduced. Now let's get over to investment. If you invest that $1k in something and later do not receive any return on your investment,. You will feel regretful, since we know that investment is high-risk, and the nature of your investment determines the amount of risk you are taking.

So i think both are crucial. You can invest and, at the same time, still save a little. I cannot prioritise one over the other, as i deem it necessary for both to put into consideration.

Investing in assets that already have added value and are liked by many people has now become very important because this must be done under any circumstances. Not only in conditions of inflation, but in conditions that must be done anyway if we want wealth or success in our own lives in the future. Because saving money anywhere is not the key to getting more money other than just facing conditions of decreasing value when the price of goods starts to increase every year.

Saving always has problems with inflation but you also need to know that investing also has risks, you can even lose all your assets if you invest in the wrong field or project. Each has its pros and cons, don't always think that saving is wasteful or not worth doing.

I want to ask you, you invested in bitcoin and your investment is losing 50% and you need money for emergencies. Would you sell your bitcoins and accept a 50% loss in value? Meanwhile, if you have savings, you will be able to handle your emergency situation easily .

Everyone always talks about inflation but do people really understand how inflation happens and how it affects our lives in the short and long term?

Exactly, that's another reason why savings alone won't be a big deal in the long run, inflation will definitely destroy that savings in no time and when you know that you've got 1k USD in savings but then you will be surprised that next month, it's probably valued or worth 998.9 USD, that's how vicious inflation is, that's why when I asked a friend that's been working as a financial advisor, they'll almost always say that it's a good idea to be investing instead of saving alone. Another thing to consider about investing is that you're going to need to balance a life worth living and investing because if you're just investing your money alone and you're forgetting to have fun, the cycle of monotony and despair will be on you and you're not going to reach the age of retirement if you're only focusing on those investments and not having fun, don't put all the money in investments, try to get a vacation at least 2 times a year and get a hobby.

Enjoying life is one of the goals when we are required to invest, by investing we can expect something better, especialy in financial terms. But for me saving and investing are both equally good and if possible it's better to do both. We can use our savings when something sudden happens that requires us to spend more money, so our investment will not be disturbed because we still have savings.

We can also use savings for investment, for example when we have a lot of savings we can allocate it to investment. I think that is a good way to do it, because it has many advantages that we can utilize.

For now inflation is eating up fiat all over the world now, the option is to either invest in Bitcoin or any other asset that will reduce your level of lost to inflation. Investment is the best option now. Any money you keep on bank does not only reduce in value but it is also not working out money for you. The most important thing to make you succeed is to invest. The moment we always think about investment the more we understand and have the thinking of a rich person because investment is the key to richness or success.