Have you been in a dilemma of whether to save first or invest? I believe that we should save first before investing. This is because, we will have cash in hand for use and even invest some after years of saving. Incase the investment doesn't yield more returns, we will still have some extra savings for use. Would you prefer to start with saving, investing or both at the same time?
It depends on the kind of investment. There are credit unions that allow contributions in trickles and in small scale such that you contribute money everyday as part of your investment. For a business, I understand that capital is required so you need to save first. There are businessmen who use their knack for business in getting consignments such that they can open a retail store with not much capital. They just simply get the goods on the promise to pay after 30 days or even 60 days. And now with the online stores, it is easy to start a business with no capital. Check on dropshipping.
My logic is if you don't have any set of savings then make sure to save 90% for 10 years minimum. And then start heavy investment. Make sure to decrease saving after that and then invest 60% of the earning. This way you'd have more aggressive investment options lined up there as well. So for me that works out but may not apply to all the people out there.
There are chances of losing out the value of your savings if you save for a longer period of time especially in countries where the inflation rate is on a high and the exchange rates not favourable on the local currencies of that coutnry. If one stays in such a country, then it is wise to invest more instead of saving to avoid cases of having your money in the bank depreciate as time passes. However, if one is one of the developed countries of the world, then saving heavily to make the future investment can be adopted, though in such cases, there are chances of missing out on some investments that would have added great value to the wealth of the person in question. So, I think it is a big decision one have to think critically before taking.
I think most would agree that it's best to invest rather than savings because an investment is already a saving in its full sense. It's even more than simply just saving as it would yield the perpetual investor what we call ROI in trading which simply means Return of Investment. There is no sense in actually just keep your money saved up in your bank account allowing the bankers liberty to use your hard earned money to make a lot or tons of profit without giving you any reasonable interest but rather they offer you peanuts compared to what they realize from making use of your money. Although I am not advocating that one take his entire life money and invest it, no not really it's not advisable that way but a reasonable amount of one's savings should go to the investment sector as it's of more benefit to the owner in simply investing than just saving.
Saving is putting money aside, bit by bit. You usually save up to pay for something specific, like a holiday, a deposit on a home, or to cover any emergencies that might crop up, like a broken boiler. Saving usually means putting your money into cash products, such as saving account in a bank or building society. While investing is taking some of your money and trying to make it grow by buying things you think will increase in value. In my opinion, I will choose to invest because for me saving is for short-term goals which you want to achieve in five years or less. Investing is good because it has a potential to higher the money might be.
I would have to say the saving money is a better option. There is a chance that if you invest it won't go through the way you want it or it will eventually backfire. Saving is a much safer option especially if you save money both in the bank and within your home just in case.
If you are a risk taker, it is better to invest in a trust worthy programs. never put money in high yield investment programs, instead invest in stocks and bonds. If you do not want to take risk, you can save money in the fixed depost account. However, the profits you make from investment is greater than the interest you receive on your funds on saving account.
