Saving Vs Investing
Saving versus investment what would you prefer?
Saving on its own is kind of futile, you can spend money now or save it for the future. You can either be poor now or you can be poor later. It makes no difference. Saving money isn’t going to make you rich. Like Robert G. Allen said – “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.“
Of course, it’s not like we should never save our money, saving money is important because the future is uncertain and you don’t know when you’ll be in need of money. So it’s good to have some extra money for those rainy days in the future.
Like I already said saving on its own is never going to make you wealthy, even if you are really good at it unless you have a really high paying job. On the other hand, you can’t really invest if you don’t have any savings to invest. So saving is a necessary part of that equation. The big picture of how this works is that we need to save some money to make investment and by investing we can grow our savings. Investment and saving are connected with each other. Doing one without the other makes no sense.