Topic: Why we should prioritize investment over saving - page 4. (Read 2166 times)

SAVING = INVESTING.

I think that is something that most people do not seem to understand.

If you save fiat dollars in your bank account, you are investing into the dollar. If you are saving euros, you are investing into euros. And so on.

When you think about it like that, you realize that your money is perpetually invested into something. And when it comes to fiat, it will lead to a loss due to inflation in the long term. So obviously "saving", in this case, is not going to help you in your future.

But lets think of it in terms of Bitcoin: Saving Bitcoin is a smart thing because that is just "hodling Bitcoin". And that is exactly what we should all be doing.

We should give more importance than saving because investment can increase it later but if one saves then only that amount of money will be saved. Investment should be given more importance than saving. If you invest properly, you can get more profit and it is possible to do something good for a long time. And investment can only increase.

If we do speak about investment then of course it would really be that automatically twinned up with risks and this is something that you should really be making yourself be wary about those points and this is something that you would really be needing for yourself to make out those adjustments but of course this is something that would be on someones preference and liking when it comes to risks taking.
Some could really be able to bare up with the risks and some cant really be just that able to hold it up. When it comes to savings then it would be also a default thing as an individual.
We do know about those standard things which needs up to be that done but not all would really be that thinking about on what are the necessary steps that should be done.

I think that is part of the risk, there is no activity that is free from risk, especially when it comes to investment. We can only study the situation, study the market, and so on before deciding to take action such as saving or investing. Buying assets such as land will usually be more secure against losing the value of money, or you can also buy property such as a house, to protect the value of money so that it does not shrink due to inflation. You can also buy other assets such as buying Bitcoin, shares or something like that, but what is clear is that you have to understand the level of risk first.

On the other hand, the solution to ensure that the value of money is not affected by inflation as a whole is to divide it, I mean part of it is saved and the other part is invested. As a wise man said, "don't put all your eggs in one basket", I like that sentence. However, if you look at the current era, reducing expenses just to be able to save seems very difficult, we are very much influenced by things that are consumptive.

I also prefer to spread the risk into several things as you mentioned by continuing to make stepping stones such as saving for all these needs. Because before doing all that, of course everyone needs capital which is basically from their own savings for purposes such as shares, bonds, real estate, cryptocurrency, etc. So the savings approach is only the initial part of implementing each strategy on several things with very different levels of risk for each case.

To succeed in a difficult economy is not easy because it always requires precise and intelligent thinking so that you can face all the existing dynamics. Whether it's market dynamics as you said, or other dynamics that exist in life because nowadays almost all jobs that involve money definitely require proper literacy and accompanied by smart thinking.

Saving and investing our hard-earned money are both admirable goals, but investing is more crucial and even a smart move because, any one that has enough money, it's best for him to put it in to business or invest rather than hoarding it in a bank account where you will ultimately spend it all without making any profit. Nevertheless, the benefits will come from all directions if you use them to invest and make a difference in business. Because there won't be any profits and the bank will remove its own if you insist that we should only save all of our money in bank accounts.

However, I do not know enough to hold people accountable for the fact that, despite having enough money, some people are unable to establish businesses or make investments because they are ignorant of market dynamics, which is a necessary first step for anyone who genuinely wants to succeed in any kind of investment and prevent excessive financial loss. Money can be used to make more money, but if we limit how much we can save in our account, even if we live there for more than seven years, then our savings will not increase over time; instead they will decrease.

Though simplistic, your approach is skating on thin ice. Will we go deeper? Saving is important, but it's not everything. A stepping stone, not a strategy. The true game? Diversification. It's more than saving for a rainy day or a new project. Spread risks and seize opportunities across a spectrum. Stocks, bonds, real estate, cryptocurrency, etc

Another thing: Financial literacy is required. Make educated decisions, not just options. Making investments without knowing market dynamics, risk assessment, and financial planning is like walking a tightrope blindfolded. You think you're progressing but aren't. Before you preach personal choice and common sense, do you understand the economics? Are you repeating platitudes? Be smart, think critically, and you might succeed in this difficult economy

Those realizations would really be able to be encounter along the way or on the time that you would really be dealing up into this market. It would really be that just that depending on how well you do hover yourself into this market. We do know that when it comes to investment then this is something that will vary or depending on how well you do handle your investment and made out wise decisions. Saving isnt bad because we do know that once we do have those savings then it isnt really just that good for emergency purposes but also for investment and businesses purposes too and other things which does involved money.

With just using up our own common sense then you would really be able to make yourself tending to save up and would really be having that kind of opportunity if ever you would be deciding
on going into that venture. It would really be just that on someones personal choice on which things that they would really be getting involved into. This is why it would be
better that you should really be having those plans and having those wise decision once you do decide on taking up a step.

By the way, there are those who believe that in order for inflation not to affect their savings, you can buy something, some things, but the truth is that things also lose their value over time, unless they are some kind of collectibles, then this is also possible classified as investment. We live in a society of consumers, every day we are served a large amount of advertising, and they are constantly trying to sell something, it is not strange that people buy a lot of unnecessary things.

The shape of each person's mindset in terms of investment and in terms of hoping to make a profit is different, but when it comes to investing in Bitcoin or other cryptocurrencies you must have a fairly wise mindset, such as not immediately expecting profits to come instantly. Because market conditions don't always work well enough, so in certain conditions everyone must be able to understand that we need to survive when conditions are bad and not panic when we see the price of the assets we invest in not moving well enough in a certain time.

In this era of globalization, investing in bitcoin, land and gold is no longer something new in our lives. In short, investment is an activity to seek financial freedom in the future. As you have explained, saving is not the right choice, apart from not producing profits, our savings actually experience inflation. So by investing, basically we will get the benefits after a certain period of time. So we should leave behind a wasteful and consumptive lifestyle, and start investing early for future financial freedom.

Because when we invest, we will definitely increase the value of assets and also the value of wealth. The assets we set aside as investments will of course continue to increase and become more numerous. When our assets increase, our wealth will also increase. Investment is an activity that is suitable to be done as early as possible. So, it's absolutely true as you said, starting to invest little by little will increase our wealth in the future.

Moreover, patience is very important when starting an investment, because as you said, it doesn't bear fruits instantly. Sometimes you have to wait long periods of time until your investments start generating profits, and to give up on the middle of this process can be a very bad idea which will have as consequences unrecoverable losses which could be simply avoided if the investor were patient and kept his assets or investments untouched for longer.

Nowadays people are too impulsive and immediatist that they want everything for "yesterday". And when things start getting too long to happen, they become desperate and start looking for solutions on the present moment, when there isn't any. I believe part of this mindset is due to people listening to virtual coaches who promise instant profitability and easy life without efforts and sacrifices. They completely adopt the illusions promoted by coaches for their own lives, expecting those illusory scenarios to happen on their realities as well, so they close their eyes for the potential adversities which may also happen. They don't weight pros and cons. Instead, they focus only on pros, because they are told by coaches to think positively in every scenarios.

In the end, they aren't taught how to deal with unexpected challenges, so once they face them, they simply don't know how to act properly, resulting in impactful mistakes which totally compromises the investments. If patience were a cultivated trait, though, things could be different...

Let us correct that kind of mindset, Investing doesn't work like a magic wand that generates money instantly. Even if you invest in a popular asset, you still need to have a good understanding of the investment and the necessary actions to take in case of unexpected scenarios. It's crucial to educate ourselves and make informed decisions when it comes to investing.

Is good we run away for doubt of our mind, doubt comes when we don't have confidence in what we want to do. When we talk about savings and investment this are actually two different things, I don't blame anyone that run away from investing, it could be either the money they have can not sustain them in taken care of their need or fear of losing everything, the both have an advantage and the disadvantages,

Saving is good but it will be eat up by inflation especially now if assumed I saved one million Naira in last five month by now it have been useless because of inflation, the only advantage I noticed with savings is the entire money will remain in it quantity but reduce in value due to high cost of commodities.

Investment is also a good one because when we invest our money it give us more security in times of spending, it helps in controlling our spending and always add value to the money we invested with, to my understanding investing is high in risk than saving but enjoyable when it work out.

It's true that it makes sense to invest the savings you have, but it can't be done carelessly. Of course, we have to be able to know what kind of investment can produce clear profits. We also have to be able to determine good investments so that there are no big losses. Investing offline or online requires good knowledge to be able to generate profits. Don't invest if you don't have the knowledge. which is good, because it could be the same as throwing away the money you have.

However, by saving, of course we don't need any knowledge, but what we have to pay attention to is being able to refrain from using our savings carelessly, because there are people who use their savings for things that are not very important. In my opinion, saving has no risk, unless it is lost due to a disaster such as someone stealing or something else. I also think having savings is important before investing, because we must have savings or emergency funds before investing, because there are investments that are disrupted by sudden needs such as having to pay for hospital treatment when an accident occurs, but by having savings or emergency funds the investment will not be disturbed.

Both are lifesavers.

Though the only disadvantage I could see if the majority of a certain individual is pure savings, it doesn't generate any profit, it's just there sleeping, waiting for you to spend on anything. On the other hand, investing is an active way of generating profits, depending on what kind of investment you're going to do.

For example, you're going to start a business, which most likely is not going to be good in the beginning since you have to get your daily customer first in order to generate profits and a chance to expand your business.

In short, saving is the comfort zone and risking your money in investment is a high risk high reward decision.

Simply saving means allowing inflation to reduce the value of your savings, so it's worth investing your savings to make them work and make a profit. It seems simple and understandable for everyone, but statistics show that not many people do it.

Most often, people stop at the saving stage, even having some savings, a person already feels calmer, and they don’t think about inflation, although everyone feels its impact. Investments require experience, even more than knowledge, the hardest thing is to start doing something, it is difficult because there is a risk of losing savings, so most people choose to simply do nothing.

Your not wrong but it depends which way and how long will the person invest, let's not just view our investment as money supplier every year or something else. Everyone have their different reasons for investing and some might have another reason for saving their money using fiat currency, in what ways investing should be more preferable compared to saving. You can mention so many investment like gold, bitcoin etc but some investment might not serve as profit due to lack of understanding as an investor, what I'm trying to say is knowing the kind of investment and understanding the terms before investing is the best.
Let's not forget investing requires money and sometimes you need to exhibit the habit of patient or else you can't invest for long.

It is going to grow in itself if we invest it to a known investment that we are aware of that will generate us money. But here's the thing, people who are saving probably have thought of investing it.

As with all of these people sharing their stories online, I've come to notice that not everyone can afford to invest. And with that, they are only saving their money so that there's something that they can pull off in times of needs.

For that reason, they can't risk. But I am sure that if they try it a little by little, they'll eventually get to see that they're able to take risk soon but they don't have to force it on themselves.

I think what you say is quite true because money will never increase if it is only saved and can even potentially decrease if the owner does not get other money to use and spend it on a daily basis. So the need to use money into business and investment is something that is indeed worth doing in order to be able to increase income in other forms of money so that we can become rich over time if we can continue to be profitable through business and investment that we do ourselves with the money we have.