Topic: Why we should prioritize investment over saving - page 3. (Read 2277 times)

There is a huge difference between investment and saving as you said, saving would only make the value of our money be smaller or the things that we could buy with it would be less in the future due to inflation.
The problem in investment is not everyone is cut out for it, they would just focus on the profit not considering the risk.
One of the biggest example that we could give is those who invested in crypto without proper knowledge, and those who would cry every time that the price drop down.
When investing your money you should always consider the risk not just the profit, most of the investor of crypto focus on the successful stories not knowing the road that they take to be successful isn't easy as we think.

Apart from that, saving always has problems with inflation. So, the value of your savings could decrease without reducing the amount. However, with investment, we can generate additional income at any time.
However, I also think that it would be better to prioritize investments because they can be a very good thing when we have entered old age, or perhaps retired. The investments we make today can be a new source of income, and in fact, in many cases, people who focus on investments have much more income from investments than from their main job. However, investing is a very good thing, but we also need to save because we don't want to sell the investments we have when we need money in an emergency. at that time, savings are very necessary.

For the older ones, savings are a must because they can't take any longer risk unless they've got a huge savings that they can attain to lose money by taking risks with investments. It's best for the younger ones to invest at an early stage because they can attain to make mistakes and they can recover eventually, that's why the old ones are good to have with what's left on them if they ever have saved and invested at their young age. And as they grow old, it's best to them to just enjoy the profits they've made to enjoy life.

The need for emergency funds is a prioritized aspect of fund management needs, everyone has savings funds to be used partly for emergency funds and partly converted savings funds for investing in gold, real estate or even bitcoin because even though savings funds also need to be converted into stable investments rather than saving fiat which can lead to inflation at any time, so it would be beneficial to keep savings funds in stable assets for future needs.

It's true that inflation is a major enemy to savings but its good to always have cash at hand and i think they is a big misconception here, we invest for long term or to make profits and we save to store value or to keep value around in other to solve a problem later.

Now we have to understand that every currency in the world is suvering from inflation right now and some currencies faster than others, dollars is one of the currency with the slowest inflation rate now.

You know the concept of having emergency funds around and reserves as a necessity to ensure that sudden happenings doesn't make you sell you holdings or liquidate your investment, so if you have all your value stored in bitcoin or any investment how would you invest further and what If its serious like a health challenge.

Inflation should not stop you from saving, cause what you save can save you, we save for things like emergency and without saving we are not even sure of holding our investment untill we make profits. So to ensure inflation doesn't meet you find a currency with a slower inflation rate to store your funds in and keep it.


I think I've covered saving to solve problems, not every body keeps value for the same reasons, some just want value around, if you want to save to store value while it's not a very good idea cause you could actually invest that money and gain value from it unless for fear of risk of lose in investment.

You can store value in less volatile assets like gold, or stable coins, I guess it's almost alike with the one I explained earlier, except its still involve storing value in assets.

Some savings are necessary in life as these savings will be some recourse in your old age. But of course, investment should be given priority over savings. According to me, investment should be prioritized for four reasons.
 The number one reason is investment will yield a high rate of return which is never possible from savings.
The second reason is if the money is saved and later on if there is inflation, then the profit from the investment will face a loss.
Number three saving is stable and investment is dynamic. We know that status is death and speed is life.
The fourth and final reason is the opportunity cost of savings is high.

Having funds for emergency needs should be everyone's priority, even if it rarely happens, at least have preparations to deal with such situations.  Choosing savings and investments is of course very profitable if the finances we have are sufficient to cover everything, the most important thing is that meeting basic needs must be prioritized, the rest can be saved and invested even if the nominal value is not too large.  The most important thing is to consistently set aside every month.

Easy answer, saving isn't giving you profit, it only gives you the same amount that you can pull out whenever you need it in the future and saving is vulnerable to inflation especially if it's the piggybank kind of savings meanwhile with investing although you're risking the money because it grows or regress depending on the value of the investment but the point of investment is that the savings is growing and giving you a profit so totally agree with prioritizing investment over saving but the only advantage of saving in this comparison is that, you can pull out savings anytime as for investment, either you pull it out prematurely resulting in small profit or loss because you happen to pull out the investment at the time when the value of the investment was tanking or lower than your initial entry to that investment.

Somehow we should think about saving for the time of emergency so that we have to get something when we immediately needed some funds. We can't be so sure when an emergency situation happen so its better to separate some funds for security. Although its really good to invest but the problem there if we can't take out our money when the time we need it the most. For sure we will be in a lot of trouble and for sure to get a lot of stress since we think about we have money but we already put it on some things that we think that can generate us a profit in future but we can't take it anytime we want.

That's why having these two option is really the best so that we can be so sure that we are totally fine and there's nothing to worry about especially when we need something. Some other people may say that emergency cases is rare situation but we should prepare to any possibilities that it will came.

So true. Whatever our job, we must have the ability to manage finances. Starting from office workers, business people to freelancers, they must have the ability to manage finances, so that finances remain stable and do not disappear in the midst of an uncertain economy. Saving and investing are things that everyone must have to create financial freedom in the future.

To achieve all that, Financial Literacy is very important for everyone to have, this is also so that we are not easily deceived in financial matters such as investment fraud or various other financial related frauds.

Save enough and put the rest into investments so that the money we have can be more productive and if investing doesn't make you confident then building a business can also be a good decision. Because the money we have can produce much more productive profits than saving. It is better to prioritize investing or building a business rather than saving all the money we have, but savings are still very necessary because there are times when we need money unpredictably.

Investing in bitcoin, gold or land is the right choice because these three investments can maintain value. Moreover, this investment can also provide profits in the midst of inflation and people will not lose the value of the money they have. Accuracy must be done so that the money we have is much more productive in generating profits in the long term.

Investments are made if we already have savings, at least we have savings equivalent to one year's salary, so that if something unexpected happens then this is not a problem. After that, if we already have savings, we can invest according to the field we control, so that if something bad happens it won't disrupt our family's economy. Often people force themselves to invest, so that in the middle of the road investment must be taken to meet their needs

in emergency situation you should use insurance to cover, i think people with mindset of keeping things safe always have insurance, but i guess the situation differ from each country to another but general rule of thumb having insurance always helps as long as its not that kind of scammy insurance but a real thing so that we don't need to think about saving up for emergency because frankly speaking the cost of medical treatment are massive.
thats why we can be all in to investment and still can face any emergency situation if it happened to emerge.
i would say, before investing, try to think about what we all need for a living then proceed to invest because thats also essential to not disrupt the investment process.

In Economics, we were always taught money saved was automatically invested. Took me time to realize that it was only invested into businesses as loans taken. And what you said was true, the value would have dropped making it a vain endeavor.

So, basically what I'm trying to say is that money saved and invested are still automatically the same but we should save our money in the right place. Don't save in banks, save in assets.

I agree with this. Investment will definitely bring us more money since we can earn profit from it compared to saving where we just keep our money in banks and won't bring us profit. But both investing and saving are important. Since like what you've said, when there's an emergency it would be difficult for us to use our investment especially if it's doing well. Also on the contrary, if your investment didn't do well, we wouldn't be able to get something for emergency purposes. So aside from focusing on investments, we should also have our savings on the side cause we don't know what will happen tomorrow. Investment will help us earn money and saving will make it easy for us to find money whenever we need it.

Savings are necessary, there can be emergencies and times when you might need funds and you can't use funds that you have invested in such situations. Will you sell your Bitcoins even if they are at a loss if you face an emergency because you don't have funds for the emergency? You can't because that means you are wasting your money and instead of getting profit from your investment, you are getting loss and no one would want that.

So it's essential to have savings, you don't need to keep it in an account where you will be charged fees and stuff, create a savings account and keep your savings in it so that you can use them whenever you need to. If you can afford, have both, savings and investment funds, so that you don't need to use your savings for investment purposes.

Your statement is unclear. Each individual has a unique mindset when it comes to investments, particularly in cryptocurrencies where having a wise mindset is crucial but then you are saying that all investors should have the same mindset when it comes to crypto investments, whereas other types of investments depend on an individual's personal preferences?

Yes, there are times when the things we have bought become worthless over time, and this usually happens to young people who only care about a luxurious lifestyle even though it is only temporary, and I think they are used to being like this. then prestige can happen, where when they are used to a luxurious style they will not be able to lower the level of style so even though their situation is difficult they will probably still force themselves to look all luxurious, this is often a problem because they cannot save money so it is difficult too to make investments.

unless you buy things that seem different, such as antiques, which may have a high price value over time, such as paintings that have their own meaning, because I think there are also people who like collecting antiques, and I think this is also including investment, but leading to hobbies.

It is to remain strong despite the unpredictable condition of the market. Investing is not just knowing how to hold but also knowing how to analyze the market and when to sell. Indeed, investing is not a quick rich scheme that after buying it generates a profit already but it takes several months or even years to see it. However, with the up and down movement of the price, we can take advantage of it and play the roller coaster trend to earn more.

Investing will be good if we know how to manage it also because I see that not all investors become successful due to mismanagement of funds and investment. It would be better to have money and knowledge to backup the situation as this is also a common reason why some investors fail.

It is clear, investment certainly has its own risks because it is related to money and profits and losses. but losses in investment in my opinion can be minimized with good knowledge, so before investing we must have good knowledge and knowledge first about investment and this applies to offline or online investment both have the same risk of loss,. especially if you don't have any knowledge at all it's just a waste of money.

It is also true that with the risks involved in investment, there are those who are able to bear it or overcome it there are also those who do not give up directly to end their investment. in my opinion, saving also has its own risks such as the loss of money saved due to disaster, of course no one knows it's just that in my opinion, investment is profitable if we really run it as well as possible, don't stop in the middle when the investment has not really reached a profitable point.