Saving money is not an easy task, especially when you have spent all your life around the biggest spenders. My friend Joseph would marvel that I even picked this subject because I have never been a good saver all my life.
My journey towards saving began when my son was born, and I realized that I barely had a plan for myself in the future or my kids. I had to pick up many books about saving, and I visited the bank more to talk about saving my money.
Many months have passed since I started saving, and I feel more confident in handling issues since I know there is some cash to fall back on if things go south. On the other side, I have watched friends make huge money from investing in stocks and securities after I declined to participate in the ventures.
Everybody wants to become a great investor since that is the best way to increase revenue streams and employ one's money to work for them. But, you must understand what you are investing in before giving away your money. It would be best if you took the time to read about the business idea and avoid investing because friends are doing so.
I refused to invest in the Facebook stocks with my friends because of the losses I incurred in the past with certain stocks I bought. I worked as a teacher back then, so I got a very good deal to buy stocks (so I thought). I invested my entire salary (It was not a lot, by the way) and part of my savings towards the venture. I ended up making losses when I decided to sell the stocks, and my brother incurred even bigger losses from the investment.
Bottom line, I invested in the venture because my friends were hyped about the idea even though I did not understand it. I never took my time to research the ideology and assess potential losses that I could have made. I was only 24 then, but it was a great lesson for future investing ideas.
I think it is safer to save money than invest it for those who are green in the business environment and do not have much money to spend. Saving money will help you gain confidence, and later you can start looking at ways of spending your money wisely.
Saving money will also give you peace of mind; hence you can attend to emergencies without going through stress and pressure. People lose jobs all the time, and sometimes it takes longer before getting another job. In this instance, you will have finances to fall back on before things pick up again.
Consequently, saving money will motivate you to invest and have part of the money work for you. As I said earlier, save as much as you can before thinking about investments. When investing, ensure that you do not use all your money since you will be vulnerable to financial emergencies.
We do not plan to fail but invest like you are giving that money away, and you will not make any returns from it. Chances are the investment will take time before picking up, and sometimes you will have to support it further financially before it stands on its own.
Additionally, those who must invest before saving should ensure they have other revenue streams that can support their daily needs and lifestyle while waiting for investments to actualize. Do not take major risks that will drive you into depression when everything goes south. I have had friends who have sunk into clinical depression because of making bad investment decisions with their last money.
Conclusively, save money first and invest later if you are not financially stable. As outlined above, the saving will give you time and confidence to analyze investment opportunities before choosing the best.
Do not get me wrong; investment is the ultimate goal because we all want our money to work for us. But bad investments are worse than leaving the money to rot in the bank. You don't want to give your money away unnecessarily after working so hard to earn it.
Save your money as much as you can; there is always time to invest later.
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