Why we should prioritize investment over saving

[erep]

Quite rightly since investment strengthens any kind of production process post-investment gains enable one to enjoy quality time with family and loved ones in his old age. Moreover there is no substitute for investment in the economic and personal development of any country. Investment-dependent people make their money production process more efficient and improved. If investment is emphasized among the people of the country then the unemployed people of the country will also be able to become economically independent through their small capital investment and be free from the curse of unemployment.

I also thought about why unemployed people who don't have jobs don't invest independently at this time, even though that is an important part of what they have to do by eradicating unemployment through themselves. Even though they can only start with a small amount of capital, I think it is also good for themselves in building their own economy over time because the one who is able to provide real change for themselves is themselves. So that's what sometimes makes me a little surprised why they don't do it from an early age to be able to achieve a brighter future in their old age.

In the context of our country investment in savings bonds is discouraged due to the unpromising nature of investing in the stock market due to the lack of alternative and robust mechanisms for raising funds. Due to this the countrys limited income people are in a dire economic situation. So in such a situation if people can invest in bitcoins or cryptocurrencies then they can overcome all the obstacles in their economic development and lead a better life and increase their savings. Another thing is that we have to teach the next generation in this direction from childhood and train them by hand.

We must have both to maximize financial management and investment. If you prioritize savings only for emergency needs and other needs then you must be prepared for two risks, namely the impact of inflation and your assets will not increase because the profit sharing interest from the bank is very low, the solution combines with investments in gold, property and bitcoin.

[Webetcoins]

It is perfectly said and I totally agree with the writer of this article that investment is key if we are to have financial stability because with the rate of inflation on the prices of goods and services money is fast becoming valueless so while you are quitely saving that your money it value on the prices of goods is reducing but if you invest it into one small business no matter how small the business is there will always be return on investment.
In that way  your money is growing rather than reducing

Are you forgetting the fact that investments can fail as well? What if you started a business and it failed and couldn't earn you any money at all? All your money is gone just like that, and since you didn't have any savings and have used all the money on the investment, you are now left with nothing.

This is why, I never recommend prioritizing investment over savings, if one thinks they can afford it, they should do both simultaneously, they should have one wallet or account for savings and another for investment and they shouldn't use their savings for investment purposes so that if they make an investment in the future and it doesn't work out, they would at least have some savings to give them some back up.

[Iranus]

It is perfectly said and I totally agree with the writer of this article that investment is key if we are to have financial stability because with the rate of inflation on the prices of goods and services money is fast becoming valueless so while you are quitely saving that your money it value on the prices of goods is reducing but if you invest it into one small business no matter how small the business is there will always be return on investment.
In that way  your money is growing rather than reducing

Are you forgetting the fact that investments can fail as well? What if you started a business and it failed and couldn't earn you any money at all? All your money is gone just like that, and since you didn't have any savings and have used all the money on the investment, you are now left with nothing.

This is why, I never recommend prioritizing investment over savings, if one thinks they can afford it, they should do both simultaneously, they should have one wallet or account for savings and another for investment and they shouldn't use their savings for investment purposes so that if they make an investment in the future and it doesn't work out, they would at least have some savings to give them some back up.

This is the mindset of people who are learning how to invest and are starting to make a small profit from their investments. They think they will always win in their investments and that making money is easy and they don't need to save or have a backup plan.

I have a cousin and he is only 23 years old. Before the Covid pandemic happened, he earned a lot of money through business and investment, every day he could earn $200-$300 and it was easy for him. And he started to become arrogant because he believed he was good enough to make money without having to worry about anything. But unfortunately, when COVID happened, his business and investments went bankrupt, and he lost everything. Now, he has to work as a laborer and save every penny to support himself. If he had tried to save a lot of money that day, I believe that his business would not have gone bankrupt and he would not have fallen into the tragic situation he is in now.

Saving is really important, even more important than investing.

[RockBell]

I think that investment and savings are equally important - investment as growing assets in the future, and savings as an emergency fund/short term goal. So a person must be able to have these two things, because they are quite important. However, if they can't, they can choose to build their savings first, because savings are emergency funds or short-term goals that will really help the person. Even though it will be exposed to inflation, I don't think it's too significant - another solution is they could save in gold to overcome this.

They each have a function to perform in our lives. Their modes of operation differ, and people occasionally save to invest, but not these days. The economy's poor performance makes it appear harder to invest in; as commodity prices rise, so does inflation. So, the financial system is evolving. Bitcoin's invention allows you to save and invest at the same time, as well as save in other currencies. And when it comes to emergency you can take money out of your savings. Working with the two of them is not necessarily a bad idea. And having savings does not happen till you have millions. Something tiny can also be saved to address whatever difficulty you are facing at the time.

[bestcoins1]

We must have both to maximize financial management and investment. If you prioritize savings only for emergency needs and other needs then you must be prepared for two risks, namely the impact of inflation and your assets will not increase because the profit sharing interest from the bank is very low, the solution combines with investments in gold, property and bitcoin.

Combining investment assets into several models has also become a better option now, because gold and Bitcoin have both experienced quite a big increase now. So saving large amounts of money seems to be no longer meaningful now except only for daily use and only for emergency funds, because for large investors they always prefer to increase their investment amount when they have money rather than continuing to collect fiat which in general can loss of value when inflation occurs in basic necessities.

[Fuso.hp]

Every conscious person must think about his future and by thinking about the future he saves. Saving is important for every person because as long as you have savings you are very secure. But we should give more priority to investing than saving because saving means keeping money, you can keep it in bank or yourself, but if you keep money, that money will not grow. Although there is no possibility of money growth through savings, but investing will have the possibility of money growth. Investing is riskier than saving, but that risk must be evaluated by every investor because you cannot succeed in life unless you take risks. So to achieve success in life we should give more importance on investment.

[STT]

When you are young you want to invest more and when old you must save as the time when which you will be spending that same cash is much nearer so the leeway of time for investment returns is not there so much.   If you invest, lose some but gain back returns over ten years when young you can shoulder the losses as near term you are still earning and dont have to worry so much.  The opposite is true when old, you have health considerations and other unexpected capital requirements that mean immediate use of savings there is no leeway to wait for investment terms to come to fruition.

Take advantage of your stance as you progress in life, at an older age you will have more capital and able to take less risk to gain the same amount back.   At a younger age you have less capital but more endurance vs any losses you have the capacity to gain more in percentage terms for that risk taken but its less assured.  When you retire basically it does require a guaranteed or assured income to be a fairly large part of your income.   These two groups of people being diametrically opposite is actually part of a normal economy I think, they occupy different parts providing advantages in their own way. 

Savings are a form of risked lending, ignoring government regulations for a second a bond will be more secure and rate more highly over any savings lent to an institution should the worst happen.   Hence Bonds are the back bone of most modern economies and vital liquidity to company finance but also people like pensioners etc.

[leonair]

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.

Yes, it is foolish to save money according to the inflation of the country's money because it reduces the value of our money. so making the investment will be a very good decision for us. Although investment is very risky, if we can accept this risk and invest in the right place, we can make huge profits and save ourselves from inflation. so I personally think that investment from savings is the best idea to maintain the value of money as well as earn money.

[kawetsriyanto]

Yes, it is foolish to save money according to the inflation of the country's money because it reduces the value of our money. so making the investment will be a very good decision for us. Although investment is very risky, if we can accept this risk and invest in the right place, we can make huge profits and save ourselves from inflation. so I personally think that investment from savings is the best idea to maintain the value of money as well as earn money.

Why you say "foolish" to people who want to secure their reserved money for the future?
It is not a bad decision to have saving, people can have reserved money for emergency or urgent needs in the future. When it is for saving purpose, I also keep it in our currency. It can be easier to use it at any time, we can pay anything with our fiats. But if all our funds to put on the investment, the risk will be too high. There is no guarantee to succeed in every investment, there is a chance to fail as well. Having both saving and investment is a wise way to deal with the risks. Saving enables us to have reserved money to use at any time, meanwhile investment let's us to multiply our money. So, I think smart people won't focus on investment only, they will try to have both of them (saving & investment).

[TopT3ns]

Yes, it is foolish to save money according to the inflation of the country's money because it reduces the value of our money. so making the investment will be a very good decision for us. Although investment is very risky, if we can accept this risk and invest in the right place, we can make huge profits and save ourselves from inflation. so I personally think that investment from savings is the best idea to maintain the value of money as well as earn money.

Exactly, currently there are many investment media that provide very profitable offers, what is really avoided is investing in local currency or paper currency, I prefer to invest in property, gold and the most important thing is Bitcoin. I really believe that the three types of investments that I have chosen will provide many benefits when saved for more than the next 20 years. I am also very sure that inflation will not have an impact on these three types of investments.