Topic: Why we should prioritize investment over saving - page 6. (Read 2277 times)

Saving money all the time is the wrong thing in my opinion because maybe your money increases when you save but every year the fiat exchange rate decreases so you could say that we save too in vain, like walking in a different place with investing because our money can work for us. while saving we work for money, I think it's like that

Volatility = Profit

People wouldnt really be diving into crypto space which it isnt limited only on Bitcoin but also in overall coins that existing into this market since they could really be able to play with those moving
prices on which if they werent moving in the first place then it would really be just basically means that you wouldnt really be able to make money and this is indeed fact the reality.
There are really just those individuals who do really love on dealing up with crypto space since the level or the volatileness of this market is really way more higher
compared into those traditional markets that we are getting used to.

If you do really know on what you are doing then you could really be able to utilize these movements for your benefit or advantage but of course
the risks involved isnt something that you could really just that confidently be able to deal with.

Why do you think Bitcoin volatility is negative volatility even though Bitcoin can still provide profit opportunities for many people through the investment and trading sectors at this time? And regarding the problem of saving at the bank, actually I also agree with what you say, although maybe not all banks do that because local banks in my country don't cut much monthly costs like you said, except for deposits which can't be zero or In other words, there must be a small remaining balance in the account so that the account doesn't die.

Investing is thousand times better than saving money. One of the reasons for this is that saving money tends to cause inflation within a few years, causing the money to lose its intrinsic value. This causes loss to the person who saved the money. On the other hand, if a person invests money in various profitable sectors, he is most likely to benefit from it. For example, if he buys a good land or invests in a shaft, he can earn a good amount of profit in a few years. So rather than saving money you should invest your money. But you must be careful before investing.

saving is not suppose to be wealth creation. its not even suppose to be long term stuff of continual gathering all excess income of

EG imagine that you earn 2000 a month
900 is house cost
400 is groceries
300 is other bills

leaving you 400 excess and 1600 expenses
initially for 4 months(4*400) you save up 1 month of bills(1600) as a savings rainy day fund.
 
after that you can then use the 400 a month on investing

whereby if inflation is say 6% OVER THE YEAR
house bills next year will be 1696 a month
meaning you only need to set aside 96 sometime over the year to top-up to keep next years rainy day fund onpar with inflation..

meaning you are not having to avoid investing, you just plan things better
for instance 96 a year is just 8 a month. so instead of investing 400 a month, you invest 392 and save 8

the point of savings is a easy access pot that is not locked up, so that you can cover any temporary incident, without having to remove investments at a bad time or rely on debt to cover the incident

Not too fast in my opinion, I get your point here about why investment is better than saving just because when you are saving money your money could easily get eaten up by inflation lowering its value through the years of saving up. But for me, it is still better to build a financial foundation first before even going and investing in something like Bitcoin or cryptocurrency something like that, because if you dont really have the financial foundation to start your investment could easily crumble and you very vulnerable on making the wrong decision something like you end up selling your Bitcoin just because you just needed the money since you dont really have something like savings.

For sure Bitcoin is a huge investment and over the years we surely already earned a huge amount of profit through years of investing but it is still a very risky investment and it wasn't guaranteed that Bitcoin is going to still exist after 5 years for sure it could easily disappear if you doesnt have a backup plan after than then you just lose everything, For me it is better to prioritize savings make sure to do savings, emergency funds, insurances, etc. before even starting to invest to something that is very risky like Bitcoin so that you always have that plan B, as well as it, is easier to HODL for the long term since you have liquid money that you could use instead of expected return to your Bitcoin investment in just a few weeks or months.

Saving cash in a bank can feel like watching it slowly turn into ice cream soup thanks to inflation. Those interest rates are smaller than a thimble, leaving you wondering if it's even worth the hassle.

But hold up, before you ditch the bank like a bad date, let's consider the options. Starting a loaning business with friends sounds cool, but let's be honest, money and friendships can get tangled faster than Christmas lights. Setting clear terms and stuff is crucial, but even then, things might go south faster than a rogue shopping cart. Drama alert!

Low-risk investments can be a sweet spot, offering more bang for your buck than a bank account without the white-knuckle ride of riskier stuff. But do your homework, like cramming for a test, before diving in. Not all "low risk" is created equal.

Keeping your money in a bank account is not the same as investing, it is called Savings. If you choose to leave your money in the bank, you may earn a very small amount of interest each year. However, this may not be a very profitable approach that's why you cannot call it an investment. The bank is the only one that benefits from using your money, not you. Therefore, keeping your money in the bank is not an investment.

There is a misconception here. Leaving money in the bank account is also an investment, namely in the bank's liquidity. The bank pays you interest for this. This interest is not paid because the bank is charitable, but because it needs the money to build up its own equity and to issue loans. If the bank goes bust, the money is usually (partly or completely) gone. It is therefore also an investment to leave your money with the bank, albeit less risky (at least with stable institutions).

Why we should patronize investment over savings is that investmet provides more profit than savings. Let's take for example you save money in bank for 3 years, instead of making profit your money would be gradually deducted bit by bit for maintenance,  transfer or SMS fee. But in investment like Bitcoin, volatility in Bitcoin will make it to increase, except the volatility is a negative volatile instead of positive volatility.

Saving is a partial storage activity for revenue for future purposes. Saving also collects a certain amount of income/money in a certain amount. The purpose of saving also varies, including to help large purchases or even for short -term investment.
Whereas investment refers to the allocation of money or other sources of income whose hopes will benefit in the future. It also requires sacrifice at this time for benefits that can be anticipated in the future. Investments can also be in the form of purchases of stock assets, real estate or bonds, with the aim of growth in the value of income from the assets themselves.

Saving in general is done only for short -term purposes. For example emergency funds. Whereas in investments to achieve long -term goals.
Yes, but in saving and investing there are also risks that must be prepared. The risk of saving is low, because it involves financial products that can be safe, such as deposits there is savings. While the investment involves a higher risk than saving. Because seeing the value depends on the value of market performance. For example, bonds and stocks can experience changes in value.
The rate of return on saving also tends to be easy compared to investment. And the flower is determined also usually already certainly low. While investment is higher, because in the long run. Although there is a risk, this can provide benefits.
In saving there is also a risk of inflation, where a situation occurs in the price of goods and services. Factors causing inflation include high demand for an item or service that makes it increase. Other causes are also an increase in production costs and an imbalance between demand and supply. The first impact on people's interest in saving is the loss of the value of money. This means that the value of money possessed by a person is reduced, so that the money set aside for saving is not proportional to the expected value in the future, from that saving is suitable for the short term.
The impact of the two inflation is the interest of people to save as well as uncertainty. Means that the person who saves must take into account the possibility of an increase in the price of goods or services in the future, so that the amount of money that has been stored to save must be increased so that there is an anticipation of such an increase. The third impact is also a more profitable investment opportunity. This means that people who save must consider investment opportunities that are more profitable than saving, such as stocks & gold.
And maybe you can also conclude the interest of people to save. Loss of money value, uncertainty, investment opportunities is more very profitable, and all contribute to the decline in people's interest in saving.

Therefore, it is better for investment than saving. But yes everything also has a positive side and negative side.

Both need to be prioritized because if you don’t save, you will find it hard to start investing, and if you don’t invest, your savings will never multiply. So its more of a perfect combination. Now, investing may takes more risk most especially if you are still not knowledgeable on your investment, but if you make extra efforts on educating yourself, you will realized that every investment comes with great rewards, and that those who lose may not actually have ended with the right investment.

Prioritizing savings over investment is a death sentence, investing should be what should be prioritized. When you're saving you're accumulating money that are static but money isn't meant to be static, it's meant to be active (moving) and that's why it's called a currency. Saving puts your money at rest which isn't what money is supposed to be doing. Every penny that you own needs to be working to produce any penny and that penny produces it own penny and so on. When you master this you'll never lack money because you have found a way money is working for you and not you working for money.

The rich makes money to work for them and they didn't do that by saving their money but the poor works for money then save and hope they can get their dreams things but never get to own them because they haven't understood money. Investing is risky but life itself is a risk and the biggest risk is not taking any risk at all. Develop the habit of making informed investment decision and you won't be scared of the risk involved as you're taking a calculated risk that gives you a higher possibility of coming out successful.

Saving was valuable in the past but not in today's economy, saving to spend is outdated but if you're saving to invest that's still a welcome development.

savings is the short term activity to create a buffer to cover short term events so that events do not then harm investments
savings are not suppose to sit idle forever or be contributed to forever to then never invest.

you simply need to plan a budget amount you deem fit to buffer any short term incidences that would normally get you in debt. and save up a rainy day fund for that.. when you reach that amount. you stop contributing to "savings" and then put your excess income that was going to savings, to then go to investing..

then when incidents happen you are then not having to touch your investments or have incidents hit your investments. and instead you USE the savings to cover the incident to "save" you from investment loss potentials or "save" you from needing to use debt

when incidents happen you are suppose to hold and not move your investment. but instead move(contribute and diminish) your savings when incidents happen

..
alot of people on this forum from around the world are revealing that education systems do not teach economics properly
they instead flip things around and wrongly tell people to use dent for instances (thus paying double with debt interest) to not invest and instead "save" to waste the savings on hoarding as a "wealth" measure or spend frivolously on lifestyle consumption as a wealth measure
.. and this bad advice is why people dont prosper

savings is not a total wealth measure. savings is the short term event buffer to save you from using debt or having incidents hit your investments

savings is a small EASY ACCESS amount for incidents. dont put the short term savings into locked long term investments hoping to add to your wealth. keep the small budget for incidents in easy access to literally save you from incidents hitting/harming your investment/wealth plan

When you save, your money does not move. You are missing the opportunity of maximizing the time as your instrument in order to increase your cash overtime. This is the reason on why there are investments in which banks would often borrow your money in furtherance of their other projects and you will receive a corresponding interest rate depending on the amount that you invested.

This principle can also be applicable in cryptocurrencies given their large store of value. If you purchase let's say 1 BTC and HODL it, you are not only saving (due to its store of value) but you are also maximizing the opportunity of earning more in the process due to BTC's high volatility.

In conclusion, people should definitely invest money. But again, investing is not as easy as it sounds since you must also take responsibility of your investments in order for them not to lose value during a critical time.

Saving keeps your money from moving to generate profits and conversely the value of the money we save continues to lose value.
Investment has two potentials, generating profits if executed correctly by choosing one of the best investments ever, losses if the investment is carried out not based on correct knowledge because along the way we choose several things that make the investment a loss.
However, both must be implemented because in my opinion savings are also needed to meet certain needs and investment is a way of preparing for a better financial stage in the future.

What difference between saving and investment? actually investment assets has function as saving when get emergency needed without get much problem for selling our bitcoin investment assets. I have put all my saving money in bitcoin investment assets and keep accumulate few amount of bitcoin every week, I think than put my money in saving fund without get increasing the values better hold it and use as capital for investing in bitcoin and some potential altcoin.
If I have a fairly urgent need, I can sell my bitcoin investment assets at a price that is slightly more expensive than the initial price I invested, much more profitable than hold much money in saving assets.

i think more that we should prioritize saving over investing. the reason is because when we invest it means we are investing in an asset that has risks. if it's a stable asset, like gold, it's probably a good investment, but if it's riskier it doesn't seem like a wise decision. because no matter what, someone is obliged to have savings, to prevent sudden events or to save for their old age. then after saving they can think about which investments have potential in the future with less high risk, such as gold, shares or bonds, or which are more risky with higher profit potential such as bitcoin or popular altcoins.

In my opinion this is nothing more than a choice, or that means everyone has their own choice, but for me it is better to invest than to save, because investment is a place that can develop the amount of value of our money even though we are sleeping, while saving, saving is also good but on the other hand saving cannot make your money grow or that means your money will not be able to increase. but if investment in other words is exactly the same as saving but the difference is that investment can increase the amount of your money when the asset you invest in increases, but before you invest it is better for you to learn first about this investment, before you try it, But if investment in other words it is exactly the same as saving but the difference is that investment can increase the amount of your money when the asset you invest in increases, but before you invest you better learn first about this investment, before you try it, because after all investment is also an activity that has certain possible risks not only do you save money and then you get pasive income, meaning you can experience a reduction in the amount of money you allocate.

Therefore it is always recommended to learn in advance about things that smell of investment, there are many accesses to learning and you can get a lot of references to learn about investing, one of which you can search on some social media such as YouTube or other platforms that provide online classes about this investment, and I hope you can consider this as well as possible, as I explained above that in this investment there are also certain risks that can cause you to lose or make you not want to invest anymore, so consider better and learn well so that you have a good understanding of investing. On the other hand, most investors fail because they make investments not based on the right understanding and knowledge that makes them misguided and lost in the cycle of losses that dominate.

Savings keep money unchanged but every investor has a hope when investing. It is not possible to make savings at home because they can be easily spent if needed, and if money is saved in the bank, there is a risk of money because nowadays the cases of bank bankruptcy are common. Hardly saving money all our life, if at some stage in life we have to hear that the bank has gone bankrupt due to which we have lost our money, then perhaps there is no worse news than that. The bigger issue than bank failure is that there is no change in money, but if you keep money in the bank, you pay a certain amount of interest to the bank. But if I invest that money in Bitcoin without saving, then I don't need to pay any extra charges and there is a possibility of good amount of profit in future. Basically I prefer investing money over money transfer because of these reasons.