saving vs investing - minimalism vs frugality

[Sorryfor]

Both investing and saving are very important for the future. Because if you can't save money for yourself at the end of the day, it will cause you pain in the future. When we start earning money, there are many people who get money at the end of the month or at the end of the week and spend as they wish but they don't look into the future. They have no proper knowledge about the resources that may be needed in the future. So along with earning money, it is very important to accumulate some wealth so that it can be put to some use in the future. The next step is to invest in Bitcoin investments or other sectors if you want with whatever is left over from your needs. This will help you in future.

[shield132]

yes choices are narrower. but by pre-planning, even that can stretch the money, food to last a few days longer than expected
this is where people then have to get creative about increasing income

and yes increasing income is a different debate which is another category.. separate from the minimalist vs frugal planning concept
when you live in an area where there are buses, where there are shops that sell shoes/clothes. there are opportunities.
heck when you speak with friends and family and speak of the things they wish they could have, even that can be an opportunity. but thats for another category of discussion

Yes, some savings are still possible for those who are on a tight budget but saving some bucks every month will not lead to any fortune today. I think that the only solution for those people or families who struggle is to make some savings and instead of collecting bitcoins, they should buy a one-way ticket and fly to Europe. I grew up in a time when that was the only solution for people to survive.
Btw in modern times, the situation is not that difficult. If any family or person wants to improve life, informational technologies, especially programming and UI/UX design, give them the possibility to find a high-paying job online, which will give them the possibility to choose between a minimalist and frugal lifestyle. Once they find a high-paying job, then they should follow your advice to achieve great financial success. Just my two satoshis.

[franky1]

yes choices are narrower. but by pre-planning, even that can stretch the money, food to last a few days longer than expected
this is where people then have to get creative about increasing income

and yes increasing income is a different debate which is another category.. separate from the minimalist vs frugal planning concept
when you live in an area where there are buses, where there are shops that sell shoes/clothes. there are opportunities.
heck when you speak with friends and family and speak of the things they wish they could have, even that can be an opportunity. but thats for another category of discussion

Yes, some savings are still possible for those who are on a tight budget but saving some bucks every month will not lead to any fortune today. I think that the only solution for those people or families who struggle is to make some savings and instead of collecting bitcoins,

saving is not about making a fortune.. its about having a small rescue package. a small emergency pot
anything else you can accumulate ontop thats not needed in the short term incidents you can put into long term investments

saving should be in easy access cash form.. investments should be in asset form

savings is the easy access pot to save you from having to rush to sell assets or rush to use debt

[harapan]

Good topic, and useful. All of the following is from personal experience It's very simple, here are 3 steps to achieve your goals
1. saving everything and everywhere is a bad way. The good way is balanced, reasonable consumption
2. Analyze your spending, choose those that are really "empty", convert them into investments. To do this, keep a record of income, expenses and cost items.
3. If the income is still "eaten up" and there is no opportunity to save/invest - look for an additional/new channel of income.

And remember - if by old age we do not provide ourselves a quality existence (savings + passive income) - no one will provide it for us!

Saving is a must for everyone,it should be a lifestyle/habit because savings is for financial assistance and diligent spending.There's a saying that“Do not save what is left after spending, but spend what is left after saving”.....It's a good financial mindset to track your spendings wisely.

[Saint-loup]

Investing should never be mandatory and should only be done with funds you can afford to lose. Especially for highly volatile and risky assets like cryptocurrencies. So I don't think it's a good idea to focus on a monthly plan if the amounts invested are substantial. People doing that should do it as a game of chance, without specific goals. If they win, they must be happy, but if they lose, it shouldn't affect them, they shouldn't have to care about it.

[franky1]

Investing should never be mandatory and should only be done with funds you can afford to lose. Especially for highly volatile and risky assets like cryptocurrencies. So I don't think it's a good idea to focus on a monthly plan if the amounts invested are substantial. People doing that should do it as a game of chance, without specific goals. If they win, they must be happy, but if they lose, it shouldn't affect them, they shouldn't have to care about it.

yep which is why its advisable to have savings first.. to have the easy access rescue pot you dont want to lose to stupid gamble decisions*. as the safety barrier.. to cover the events where money is needed

investments is then the secondary event which to use excess funds, you are less emotional about due to having the savings rescue pot.

you are then less likely to panic when it comes to investments*..

the mindset is if the money you dont spend which you want to invest would have just been spent on frivolous stuff thus a loss anyway, you might as well aim it at investing to potentially increase wealth, still in the knowledge you might also have made bad judgements by spending it before. thus less emotionally attached.
i personally think of excess funds as:
money IF used for a luxury car just to show off for others benefit that still ends up turning to rust, just like an inexpensive car does..
money IF used for luxury food.. it would have become a toilet flush the next day, just like home cooked food,
money IF used for luxury homes require higher ongoing maintenance, landscaping, heating, bills, taxes, .. a cosy home is better

so living within your means can keep you from over-extending yourself and avoid incidents and money troubles.

thus i dont panic when investments yo-yo short-mid term. i dont need to touch it short-mid term. because if any real world incidents happen i have the easy access savings to cover that. so i am more free to then invest without the risks/fears.

..
when people decide to go full-anal frugal and live like a hermit crap, delaying living comfortably within means and instead surviving below comfort, below basic means.. they then get emotionally attached to the investments and more likely to make mistakes short-mid term*

*mistakes like still FOMO buying near new ATH, mistakenly thinking the price will "to the moon" forever and never come down

be cautious with your money but not emotional to the point of making mistakes due to excessive greed overtaking rationality, or panic causing you to sell at a loss

[topbitcoin]

We won't always be healthy, we won't always be young, and we won't always be able to continue working to earn as much money as we need. There are times when we will just lie in bed sick, and there are times when we are old and weak, so there are times when we no longer have enough strength, energy and ability to continue working and making money. And if this is not prepared right now, then when we are old or when we fall sick it will only be a hassle for other people. So this is where it is important for us to have savings as well as investments, so that at least when we get old or when we fall sick, we won't bother other people too much. Investment is a guarantee for the future, while savings is a guarantee when we are faced with an urgent situation, and savings also function to protect our investments so that they are maintained. Therefore, while you are still young, while you still have health and opportunities, earn as much money as possible and when you are old, let that money work for you through the investments you make.

[Casalania]

Investing should never be mandatory and should only be done with funds you can afford to lose. Especially for highly volatile and risky assets like cryptocurrencies. So I don't think it's a good idea to focus on a monthly plan if the amounts invested are substantial. People doing that should do it as a game of chance, without specific goals. If they win, they must be happy, but if they lose, it shouldn't affect them, they shouldn't have to care about it.

It is not mandatory. However, many people, even those who are not capable, try to invest their little money with the hope of having a better life for their family. Then, if their investment fails, they will be disappointed and lose confidence in investing. This can lead to a negative impact on their future investment decisions.

[Assface16678]

Investing should never be mandatory and should only be done with funds you can afford to lose. Especially for highly volatile and risky assets like cryptocurrencies. So I don't think it's a good idea to focus on a monthly plan if the amounts invested are substantial. People doing that should do it as a game of chance, without specific goals. If they win, they must be happy, but if they lose, it shouldn't affect them, they shouldn't have to care about it.

It is not mandatory. However, many people, even those who are not capable, try to invest their little money with the hope of having a better life for their family. Then, if their investment fails, they will be disappointed and lose confidence in investing. This can lead to a negative impact on their future investment decisions.

It's part of life; in fact, it's better to take risks in an investment or business than to do nothing. At least you have the chance to change everything in your life, but when the bad part happens, it's up to you to decide how you will cope. Will you just be disappointed and sulk forever? Life is a continuous challenge; don't expect that investing in or starting a business will guarantee you a better life. So instead of being disappointed, learn from that experience so the next time you engage in an investment, you know what to do and not do. I get it; it's hurtful and very devastating if you lose money, especially if that is your last money or hard-earned money, but what can we do? We can only move forward and try again. Because if not, then you are wasting your time just to feel disappointed and sulking.

[tabas]

I can't believe that there are people that are taking it more than the literal of living life frugally. I know that because I've been living frugally but I don't forget to give some rewards to myself if I think that it's fine in doing so and it's not going to constraint any of my budget. But I just can't those people that are coming to their terms that they live frugally in a sense that they're affecting their health, mental, physical and any other concerning matters. Because I think that I've watched a family that have been using the same water for the one that they swam on and for using the dishes.

It's part of life; in fact, it's better to take risks in an investment or business than to do nothing.

I agree but there are people that can't just take risks and have their investments even if you have told them that we all have to take risk for us to gain something.

[poodle63]

Investing should never be mandatory and should only be done with funds you can afford to lose. Especially for highly volatile and risky assets like cryptocurrencies. So I don't think it's a good idea to focus on a monthly plan if the amounts invested are substantial. People doing that should do it as a game of chance, without specific goals. If they win, they must be happy, but if they lose, it shouldn't affect them, they shouldn't have to care about it.

that only happened with investment that has significant risk though but with investment like buying gold or something of lesser risk no need to be cautious whether we gonna lose money after all we won't and even if it did its because the value of that commodity is getting down and we don't lost that much amount of money anyway.
just like bank deposits there's reason why they are so small in apy because the investment itself is quite secure, its just that people don't really like it because the interest only enough to cover for inflation.
but for investment like crypto that are quite volatile, and also quite risky but also have significant APY and easily make profit out of it it does make sense indeed to think about the strategy and only use money we can afford to lose.

[Xampeuu]

Investing should never be mandatory and should only be done with funds you can afford to lose. Especially for highly volatile and risky assets like cryptocurrencies. So I don't think it's a good idea to focus on a monthly plan if the amounts invested are substantial. People doing that should do it as a game of chance, without specific goals. If they win, they must be happy, but if they lose, it shouldn't affect them, they shouldn't have to care about it.

that only happened with investment that has significant risk though but with investment like buying gold or something of lesser risk no need to be cautious whether we gonna lose money after all we won't and even if it did its because the value of that commodity is getting down and we don't lost that much amount of money anyway.
just like bank deposits there's reason why they are so small in apy because the investment itself is quite secure, its just that people don't really like it because the interest only enough to cover for inflation.
but for investment like crypto that are quite volatile, and also quite risky but also have significant APY and easily make profit out of it it does make sense indeed to think about the strategy and only use money we can afford to lose.

Investing is not as easy as imagined, we have to study it first to know the advantages and disadvantages or risks. In general, investing is more profitable than saving, but it also carries greater risks, until the capital runs out. Therefore, risk management is required for investing. However, saving is also not worse than a consumptive lifestyle, considering that the money will run out without a trace. Therefore, as a young person, don't be lazy about learning about investing

[barisbilgili]

Investing is not as easy as imagined, we have to study it first to know the advantages and disadvantages or risks. In general, investing is more profitable than saving, but it also carries greater risks, until the capital runs out. Therefore, risk management is required for investing. However, saving is also not worse than a consumptive lifestyle, considering that the money will run out without a trace. Therefore, as a young person, don't be lazy about learning about investing

Investing is indeed more profitable than saving, but we also have to know the risks, saving has almost no risk, but investing has very big risks, but it will all be worth it with all the possible benefits that can be obtained.

Of course, when compared, investment is much better, but we also have to study it before deciding to invest in order to minimize risk.
There are many things that need to be prepared before deciding to invest and these steps will determine the investment we make.

[blckhawk]

Frugalist and minimalist lifestyle to me is pretty much the same, they both are cutting their ties to earthly desires and seek less amount of things to clutter their home, so I have a hard time finding their difference, maybe if we're talking about minimalism versus miser then that's a more apt fight because they've both have a difference that's striking.

When it comes to savings versus investing, I'd rather go for the investing because that way even if there's risk, my money will grow and in my opinion, investing is the evolved version of saving because you're not just letting your money stagnate on a piggy bank somewhere, you're making it work for you so you can reap the profits and still have some money left that's still saved and can still be used for emergencies.

[franky1]

Frugalist and minimalist lifestyle to me is pretty much the same, they both are cutting their ties to earthly desires and seek less amount of things to clutter their home, so I have a hard time finding their difference, maybe if we're talking about minimalism versus miser then that's a more apt fight because they've both have a difference that's striking.

frugalism is surviving on the cheapest things or going without

minimalism is deciding whats important that brings long term benefit and worth the expense as it brings good vibes to your life if planned and positioned to maximise its effect, and cut out the other stuff that is not worthy of being in your life

[kryptqnick]

To be honest, I don't think it's necessarily a dilemma. I try to have a bit of savings in fiat for emergencies, and I agree that doesn't require accumulation over a long period of time, but then I also try to treat and accumulate BTC as savings, actually. So I try to set some BTC aside, but I do use those funds when I need to (or even when I just want to do something special that requires more spending that usual), so it's not exactly like hodling, but more like a non-fiat savings account with a bonus of long-term appreciation of value.

[Casalania]

It's part of life; in fact, it's better to take risks in an investment or business than to do nothing. At least you have the chance to change everything in your life, but when the bad part happens, it's up to you to decide how you will cope. Will you just be disappointed and sulk forever? Life is a continuous challenge; don't expect that investing in or starting a business will guarantee you a better life. So instead of being disappointed, learn from that experience so the next time you engage in an investment, you know what to do and not do. I get it; it's hurtful and very devastating if you lose money, especially if that is your last money or hard-earned money, but what can we do? We can only move forward and try again. Because if not, then you are wasting your time just to feel disappointed and sulking.

That's true, which is why it is always advisable to have a backup plan in place before investing your money. Don't make hasty decisions without careful consideration. Only invest an amount that you can afford to lose, or invest only if you have extra funds available to cover any potential losses you may incur during your initial investment.

[Lorence.xD]

Investing is not as easy as imagined, we have to study it first to know the advantages and disadvantages or risks. In general, investing is more profitable than saving, but it also carries greater risks, until the capital runs out. Therefore, risk management is required for investing. However, saving is also not worse than a consumptive lifestyle, considering that the money will run out without a trace. Therefore, as a young person, don't be lazy about learning about investing

Investing is indeed more profitable than saving, but we also have to know the risks, saving has almost no risk, but investing has very big risks, but it will all be worth it with all the possible benefits that can be obtained.

Of course, when compared, investment is much better, but we also have to study it before deciding to invest in order to minimize risk.
There are many things that need to be prepared before deciding to invest and these steps will determine the investment we make.

A matter of choosing which is consistent and which is convenient. Saving is for sure speaks for consistency and assurance that you will have an amount to use in times of emergencies. However, investment is with convenience, in particular with making the value or worth of an amount bigger than what you have alloted and also over time. Difference is with the presence of risk. Now, everyone has a choice; some people find it better to have savings than to engage with investments and to some is the opposite. Both would work well if things are planned. Again, both are good but depends on how the individual will make things work. Some people are into savings but cannot manage preserving the amount because of circumstances or just personal wants. With investments, some people are not minding the risk or often disregarding the possibility of loss.

[mammusu]

~

That's true, which is why it is always advisable to have a backup plan in place before investing your money. Don't make hasty decisions without careful consideration. Only invest an amount that you can afford to lose, or invest only if you have extra funds available to cover any potential losses you may incur during your initial investment.

Investment decisions should be approached with careful consideration and avoid making hasty choices that could lead to financial hardship. Investing carries risks, and there is possibility of incurring losses. By only investing an amount that you can afford to lose, or by using extra funds specifically designated for investment purposes, you can minimize the potential impact on your overall financial well-being in the event of unfavorable outcomes.

Having a backup plan in place provides a safety net and peace of mind that allows you to navigate unforeseen challenges or setbacks with greater confidence. This could involve setting aside emergency funds or diversifying your investments to spread risk across different assets or sectors. Taking the time to research and educate yourself about various investment opportunities can help you make informed decisions and identify strategies that align with your financial goals and risk tolerance.

[The Sceptical Chymist]

saving is not a long term thing. not a wealth creation thing.
saving is a temporary play to only save a small amount to literally SAVE people from incidents of rainy day, emergencies where they need quick access to money.

Not all money one puts aside is earmarked for emergencies, just saying.  A person might save for a car, a house, a new dildo, whatever.

to literally SAVE you from having to resort to selling investments at a loss or using debt in an emergency.

The word "saving" has at least two meanings, and why you're equating the meaning equivalent to "saving someone from drowning" is beyond me.  If I put money aside to buy something I can't afford right away and don't want to finance, that isn't saving me from anything except acting with financial stupidity, e.g., paying for that something with a high-interest credit card.

By the way I just wanted to mention that now is a pretty good time to save money if you trust banks/brokerages, because you can find money market funds and CDs that are paying interest rates that beat inflation.  I agree that that's not wealth creation, but at the moment the stock market is sky-high and there's no telling what other investments like bitcoin are going to do.  It's kind of nice to have money on the sidelines earning 5%+, just waiting for good buying opportunities.