Why we should prioritize investment over saving

[shinratensei_]

Inflation is one big problem but that’s not the only reason why you should rather invest than save. Imagine you have $1000 and you save it. Let’s assume that for 5 years, the money wasn’t affected by inflation. When you take out the money to spend it, it will only be $1000. However, that’s not the way it should be. We are not supposed to save money to be able to spend it. We’re supposed to have a source of income from where we can spend at any time. Instead of saving that $1000, if you invest it for that 5 years, you can end up with $5000, $10,000 or even $50,000 depending on how you go about investing it. For me it’s more than inflation.

i get the gist of it, when we are talking about saving we are also talking about the decreasing in purchasing power which means that we might be saving $1000, but $1000 in 5 years will equate to $600 for example and that already 40% decreasing of purchasing power and that means saving is just us losing money slowly instead of it adding up while sacrificing current purchasing power.
if we invest, though if the APY not so high, maybe 10%, we are already countering inflation our money will be retained, and then in 5 years we still retain the purchasing power.
indeed thats the best way to go with nowadays.
but also, i think increasing salary is also one way, keep finding better job, jumping from one job to another as long as it pays better, is one way to get better life in my opinion.

[1714952140]

1714952140

[zaim7413]

Both are alternatives to financial health, but saving is very different from investing. Saving is the activity of saving money that can be withdrawn when needed, while investing can provide greater profits for the future. The inflation rate which continues to increase every year will make the value of money in savings continue to decrease, the purchasing value continues to increase making savings not the best alternative for the long term.
The reason many members who comment here choose investing rather than saving is because investing can make a profit without having to work too hard. So investment is the right choice for future financial plans. If you don't need funds quickly, investment is the solution.

[Solokan]

Indeed, there are many people who prioritize investing over saving, but there are also many who prioritize saving over investing. In my opinion, there is nothing wrong with prioritizing saving. Of course there are benefits that we can get because by saving, if there is an urgent need, we can take out money. We can easily go to an ATM or bank, but the risk is that if we save for a long time, we will definitely be hit by inflation, but actually it's not a problem because by saving at the bank, there are benefits that we can get, such as making it easier to withdraw money when we are urgent with life's needs. and I'm sure almost everyone saves at the bank because they feel the extraordinary benefits.

investment really provides a lot of benefits and usually if our money is invested like buying btc, land or gold then we potentially won't be hit by inflation but if our money has been put into bitcoin or land then if there is an urgent need of course we will need time to change it turns back into money and sometimes if you force it, for example, if you sell BTC while the price is going down, you will suffer a loss. but by investing and selling at the right time, our money will double, in essence we will get big profits. and many people have become successful as a result of investing.

So in my opinion, in this case, savings and investment are something that is needed and as many people say, only money that is ready to be lost is worth investing.

[Vinaa77]

Both are alternatives to financial health, but saving is very different from investing. Saving is the activity of saving money that can be withdrawn when needed, while investing can provide greater profits for the future. The inflation rate which continues to increase every year will make the value of money in savings continue to decrease, the purchasing value continues to increase making savings not the best alternative for the long term.
The reason many members who comment here choose investing rather than saving is because investing can make a profit without having to work too hard. So investment is the right choice for future financial plans. If you don't need funds quickly, investment is the solution.

That's right, if we don't want to have financial problems then we have to be able to invest and also save, some people still can't invest because they are not ready with the income they have so they need to save first then they can try to invest from the results their savings.
The inflation rate will indeed reduce the value of the money from the savings we have and if we still save money it will be very different after inflation occurs The money we have will decrease in value because of inflation.
Yes, when we decide to invest, we must have funds that we can hold for a long period of time so that we are not disturbed when the investment is underway and we also have to have a good plan so that it can be carried out well.

[Bd officer]

Saving our hard earned money have never been a bad idea, but their are certain things we need to consider before thinking of saving, such as inflation.
Inflation is truly the real enemy to every money that is being saved up, because when the time is right like a year time, when it should be used for it purpose, the value wouldn't be as how it actually was when you started saving it, but on the other hand, if we have been investing that money into Bitcoin, land or gold bit by bit, over the course of a year, the value of that your investment would have added additional value compared to our savings that will be eaten up by inflation.
So too me we should think of investing more of our money than saving it, so that  inflation wouldn't eat it up.

You are right I agree with you. Currently inflation has increased a lot and the value of money is decreasing day by day, so money should not be saved or kept in banks. For example, according to my country, where a laborer was paid BDT 300 a few years ago but today it is BDT 500, the wages have not increased but the value of money has decreased. You are right about this, that investing in bitcoins or gold or land rather than saving will protect your money from inflation. However if you can afford land or gold then you can buy gold or land. If you cannot afford to buy land or gold then you can invest in Bitcoin using DCA method.

[DanWalker]

Well, saving is always a good choice because that will also serve as your solution everytime there's an emergency and having an instant cash is necessary. Therefore, it's indeed never a bad idea to save. We should not chose the other option (investing) if we can do both. Because you can still invest in any opportunities out there without draining your savings.

Financial management has a crucial role in order to do this. We should know how much is needed funds to allocate for the investment that you wants to venture. While leaving some of the money as savings so incase something didn't go as planned, you still have other option where you can start over again.

I also advise us to save first instead of investing. Investing means we can win or lose, investing does not always win. And what will happen to us if we fall into an emergency situation and our investment is at a loss of 50%? But if we have a little money saved for those emergencies, things will become easier.

In my opinion, a job with a stable income along with some savings should be a priority before we want to invest. Investing is also really important because it can give us the opportunity to increase our wealth quickly as well as prevent inflation, but it should not be the top priority in life.

The truth is, it is not everyone who actually have the capacity to invest no matter the amount they have on them, they'd rather dump their money in the banks till they are ready to make use of it. This is because they are scared of taking risks.  Now the question is "can you save your money in fiat for over two or three years and still get thesame value when you withdraw? You know the answer already.

Saving is still good but keeping your funds idle for a long period of time has a higher chance of reducing its value. There are lots of low risk investments one can channel their funds to like investing in lands which has zero or very little maintenance charge or even investing in gold. You have your money intact and even get returns on your investment.

No one is advised to invest all he has, try to apportion your wealth to suit you. Certain percentages should be kept aside to meet day to day expenses and the other saved for unforeseen circumstances while the excess can then be invested. This way, you can have a balance.

I support the choice of investing in gold because it will preserve the value of our assets in the long run. Regarding the issue of inflation or currency devaluation, I do not deny it but I think we should stop exaggerating them. Currency depreciates over time but does not depreciate so quickly that it loses 30-50% of its value in 1 to 2 years, so there is nothing wrong or redundant with saving for emergencies. Inflation will only affect money stored long-term without being used, while money used in the short term is not affected by inflation. We should stop exaggerating things.

[bettercrypto]

Saving not only won't save us from inflation, but our chances of spending the money are greater than investing it, for example in gold or shares, because it takes time for us to convert it to fiat and also the consideration that we haven't made a profit will prevent us from exchanging it to fiat, which is different by saving in the bank whenever we want to use it, we can use it straight away, especially now that the banking system is digital so there are no obstacles for us to use the money as long as we are connected to the internet so in the end we only have a little leftover because we are tempted to use it and inflation will make our finances even more difficult.

I agree with what you said; we still need to have another source of income so that we have many sources of income and not just one source, to be honest. That's why other businessmen are getting richer because they multiply their sources of income.

So, we should do the same. Let's not stop at just one business; let's look for other investment opportunities that can help us grow our capital in the future. Because through investment, we can actually increase our savings even faster.

[Baperom]

Having considered what inflation does to the value of money, I think it’s still worth it to have a reasonable amount of money in savings. If one wants to save money for a long period of time, there are accounts(fixed deposits account)opened for just that purpose. That way, you won’t feel the brunt of inflation that much.

It’s also real nice to have an investment as if managed properly, it could turn out very profitable but you should note that investments ordinarily take quite a long time before it starts to constantly yield positive results if any.
Sadly, not everyone has the means to have an investment as there are a lot of people who struggle to save. If it’s difficult to save, how then could they squeeze out money to invest?

Many people have found that saving money has been very helpful, but these days, all they need to do is invest it instead of saving it because inflation has caused money to lose value. Even if you save thousands of dollars now, it won't solve your problems because of the high cost of commodities. For this reason, people whose salaries are increasing are not seeing a change in their daily lives despite price increases. as well as having a respectable sum on hand for whenever you need money or in case of an emergency. and there are no huge profits from fixed deposits either. The globe is evolving into new phases. and management is necessary for everything. And the moment you invest in anything, your main concerns will be survival and profit. Survival is crucial because there are a lot of businesses out there that have the potential to fail, so you need to be a good thinker to succeed because investing requires a lot of thought.

Firstly inflation can lead to depreciation of the value of money and simply saving without investing money can result in loss of purchasing power over time. secondly rising commodity prices can hinder positive changes in lifestyle despite increasing salaries so investment is considered a better solution to increase the value of wealth. next the focus on survival and profit in investing is considered important, requiring careful thought and management to avoid potential failure.

[Ricardo11]

Saving is good, everyone should save. But if we can utilize that savings instead of sitting it will give us more return in future. Yes I am talking about long term investment. All of us usually save. Everyone has some reason behind saving, some save to fulfill their dreams or some save for business or other things. Most of the people keep savings in the bank or in their own box and it stays the same in the future it doesn't increase or decrease. If we don't saving like this, long-term investment in Bitcoin will pay us more than the invested money in a future (everyone usually saves long-term). We should invest 80% of our savings in bitcoins, and leave 20% of the money to come out of major problems, such as health problems or other problems. It will also saving and make a profit. And also we can't need to seek help from others in times of danger. So you can definitely make a long-term investment in Bitcoin.

[CageMabok]

Firstly inflation can lead to depreciation of the value of money and simply saving without investing money can result in loss of purchasing power over time. secondly rising commodity prices can hinder positive changes in lifestyle despite increasing salaries so investment is considered a better solution to increase the value of wealth. next the focus on survival and profit in investing is considered important, requiring careful thought and management to avoid potential failure.

In any case, careful thinking and management is really needed for everyone who doesn't want to experience failure, because increasing salaries and increasing commodity prices will balance things out in life so that everyone still has to try more to get more profits through whatever means. However, this certainly will not be easy enough if at one time inflation occurs which can depress the value of each person's money so that each person's struggle will increase and those who are able to survive such conditions will definitely not experience failure.

[|MINER|]

I also agree with this. Saving money can reduce a lot of value for inflation. It will be best if you invest the money in bitcoin. After bitcoin, the better option is to invest in land.  Next comes the Gold option. I would say that it is better to use money instead of saving it. It is better to get money out of money.

[Hamphser]

Firstly inflation can lead to depreciation of the value of money and simply saving without investing money can result in loss of purchasing power over time. secondly rising commodity prices can hinder positive changes in lifestyle despite increasing salaries so investment is considered a better solution to increase the value of wealth. next the focus on survival and profit in investing is considered important, requiring careful thought and management to avoid potential failure.

In any case, careful thinking and management is really needed for everyone who doesn't want to experience failure, because increasing salaries and increasing commodity prices will balance things out in life so that everyone still has to try more to get more profits through whatever means. However, this certainly will not be easy enough if at one time inflation occurs which can depress the value of each person's money so that each person's struggle will increase and those who are able to survive such conditions will definitely not experience failure.

Failure is inevitable but doesnt mean that you cant be able to less such impact or effect on the time that you would be able to experience it. This is why it would really be always that wise that you should really be wary on the actions that you are making on which basing up on the analysis and knowledge that you have gathered or accumulate. Investing? This should really be standard but not all would really be thinking up this option
on the time that they do still have the money on their pockets on which they arent thinking about those probabilities that they could mess up their life if they had made out such bad decision.

If you dont have plans on having a progressive life then it would be normal that you wont really be making any further steps or plans to make your life way more better.
You wont really be just sitting down without doing nothing.

[Beparanf]

So too me we should think of investing more of our money than saving it, so that  inflation wouldn't eat it up.

Why the need to choose if you can do both. You can save part of your salary and total money in bank or insurance then use the rest on investments so that you will not be focus on one thing risk. Investment has risk too which can be greater than the inflation that you are considering once your investment goes wrong that’s why it’s still important to diversify your money and don’t put all your eggs in one basket.

Sticking tp basic such as saving will give you some assurance of safety since you have a quick access to your money unlike investment which is dependent on the current value unless you are willing to take loss immediately once you need the money while your investment value is down. Investment is dependent while your savings is independent that’s why having both will give you an advantage on both scenarios which this two excel the most.

[Lukmanfirdaus1]

yes of course, just last year our country's currency was 10%. Imagine if you save $100k in 2023, the value of your money in 2024 will only be $90k. Inflation is a real and true enemy. But in my opinion, don't invest carelessly, consider the risk of loss too, don't lose your money because you invest carelessly. For myself, I divide my investments into several portfolios, including Bitcoin and Eth in them, even though the amount is only 30% of the total investment value.

[Ultegra134]

Both are alternatives to financial health, but saving is very different from investing. Saving is the activity of saving money that can be withdrawn when needed, while investing can provide greater profits for the future. The inflation rate which continues to increase every year will make the value of money in savings continue to decrease, the purchasing value continues to increase making savings not the best alternative for the long term.
The reason many members who comment here choose investing rather than saving is because investing can make a profit without having to work too hard. So investment is the right choice for future financial plans. If you don't need funds quickly, investment is the solution.

Both are necessary for your financial wellbeing, you cannot start investing if you cannot afford to save in the first place. Savings are supposed to be for emergency purposes, in fiat currency, while investments may last several years without touching your funds. The combination of the two is necessary, and can especially be combined with a high interest savings account. Revolut for instance offers up to 4% for USD deposits. That way you're saving and earning a decent interest simultaneously, risk free.

[snowpega]

Saving our hard earned money have never been a bad idea, but their are certain things we need to consider before thinking of saving, such as inflation.
Inflation is truly the real enemy to every money that is being saved up, because when the time is right like a year time, when it should be used for it purpose, the value wouldn't be as how it actually was when you started saving it, but on the other hand, if we have been investing that money into Bitcoin, land or gold bit by bit, over the course of a year, the value of that your investment would have added additional value compared to our savings that will be eaten up by inflation.
So too me we should think of investing more of our money than saving it, so that  inflation wouldn't eat it up.

well, you said very well that because inflation decreases the value of our money we save after giving it big time well we also should focus on investing besides savings because investing in good projects or places can make you comfortable due to cash flow like when you see cash flow it will motivate you and give confidence for saving and investing more to make more money.

Well dear I used to say one thing if one gets sufficient salary he/she should divide his/her salary into three parts... one for savings second for spending third for investing. In this way, you can feel more comfortable because wen you see you saving is increasing along with the investment you investment is also increasing will give you mind relaxation. well everybody has his own boundries and issues so this plan may not implement to everybody life style but those who feel comfortable to implement it can do accordingly. well best is that take action at your own end and it is not recomended to follow anyone plan.

[Iroh]

Why the need to choose if you can do both. You can save part of your salary and total money in bank or insurance then use the rest on investments so that you will not be focus on one thing risk. Investment has risk too which can be greater than the inflation that you are considering once your investment goes wrong that’s why it’s still important to diversify your money and don’t put all your eggs in one basket.

It’s actually best if you can do both. Savings could turn out to be helpful sooner or later as emergencies and costs not envisaged do tend to pop up every now and then. If you’ve got some savings, it could help solve these unexpected expenses and you wouldn’t have to liquidate some assets or have to sell off some/all of your investments to be able to solve the problems.

With investments, proper research and education is required as they too could be risky. Not putting all your money into a single investment/project would be extremely wise. Best bet is to to spread your net out by diversifying.

[jaberwock]

Saving our hard earned money have never been a bad idea, but their are certain things we need to consider before thinking of saving, such as inflation.
Inflation is truly the real enemy to every money that is being saved up, because when the time is right like a year time, when it should be used for it purpose, the value wouldn't be as how it actually was when you started saving it, but on the other hand, if we have been investing that money into Bitcoin, land or gold bit by bit, over the course of a year, the value of that your investment would have added additional value compared to our savings that will be eaten up by inflation.
So too me we should think of investing more of our money than saving it, so that  inflation wouldn't eat it up.

You are right I agree with you. Currently inflation has increased a lot and the value of money is decreasing day by day, so money should not be saved or kept in banks. For example, according to my country, where a laborer was paid BDT 300 a few years ago but today it is BDT 500, the wages have not increased but the value of money has decreased. You are right about this, that investing in bitcoins or gold or land rather than saving will protect your money from inflation. However if you can afford land or gold then you can buy gold or land. If you cannot afford to buy land or gold then you can invest in Bitcoin using DCA method.

Fiat currency could very well be the worst type of investment anything could ever have. Technically speaking, you are losing money when you hold money. I know that sounds a little weird to some people, because they do not realize the point but the fact is that I have to say it would really not be all that uncommon thing, it's inflation.

So when you are talking about something serious, it has to be considered that there is a possible scenario where you would be able to just put that money into crypto instead and then whenever fiat gets devalued then the crypto will go higher, mainly bitcoin. This is why we should be considering that as possibility and we could potentially make it work somehow with some people as well.

[kentrolla]

I also agree with this. Saving money can reduce a lot of value for inflation. It will be best if you invest the money in bitcoin. After bitcoin, the better option is to invest in land.  Next comes the Gold option. I would say that it is better to use money instead of saving it. It is better to get money out of money.

Yes diversifying our investment portfolio will be good as it reduces the risk of running into huge loss as our investments will be diversified and it's very rare that all of them could sink at the same time. You have mentioned three of the best investment one can make because investment in land and gold will yield guaranteed profits and they are for long term as well and while choosing Bitcoin for investment they just need to ensure they are investing when Bitcoin's value is down (mostly bear market) because it will give you good profit in shorter period like couple of years instead of investing at the peak and if it falls then you may have to wait for more years and since gold and land are there for longer run I would saw here we can use Bitcoin for mid term investment so that we can utilize the profit or reinvest a part of it. 

[Lorence.xD]

Depends on what will work for you best. Some people are not into investments and that is just okay likewise with people who are not into saving. Difference could originate from the mindset ad circumstances an individual is having. If you are having large scale networks and been in investment industry or if your family does, then there's a high tendency that it would be a better option on your end. However if you are not familiar with taking that much of risk with investments then saving is still a good option however, there would be a limitation to the amount you will be getting at the 'end' depending on how much you are putting into it. In a general perspective, everyone dreams of an investment someday but not all people could take the risk and have enough resources to do so. In most instances people are chasing the necessity to make a living therefore excess money is going to savings and worse, nothing to be put eitherway.

Much better to say to prioritize what would work on your 'set up'. Not because others are doing good with investment, you will be guaranteed of the same outcome as them. Always measure the risk and your tolerance as an investor. If you cannot handle that much of doubt then that should already be an answer which pathway should you engage yourself with.