If you’ve heard the phrase ‘save for a rainy day’, then you probably already know why you should save money. Every now and then in our lives, we need to dip into savings unexpectedly. Sometimes due to illness, switching between jobs, maternity, buying a home, children’s education or retirement. We also don’t earn when very young and very old. And often, in middle age, we have family financially dependent on the earning members.
“A penny invested is a penny earned,” this might be a spin on an old saying, yet, it is the most valuable piece of advice in terms of making investments and saving our hard toiled money. In this digital world, it becomes even tougher to understand the intricacies of saving money owing to the complexity of our globally interconnected financial system.
Saving without investing is a bit like planting a sapling and not watering it every day. Eventually, it will wilt and waste your effort. Money in a bank or cash savings also work the same way, they depreciate significantly over time. A loaf of bread or a 2-bedroom home, all cost noticeably more after 5 or 10 years, due to ‘inflation’.
The journey of investment begins when we have our short-term and long-term goals clear. From buying a home to car, education or real estate, business or marriage, this all needs cash flow in abundance. An investment at an early time and age, ensures most of our financial needs will be taken care of later on.
There are a plenty of options for investment in every country based upon your income, liabilities, expenses, and circumstances. What you only need is to be comfortable with your budget – how much you earn, spend and save each month.