Saving Vs. Investment: Reasons Why You Need to Save and Invest

How to stop impulsive buying in order to save more

Impulsive buying means you are not planning to buy this product, in fact, you even don’t need this product, yet you see this product on the stack of supermarkets and you end up buying this product. For a lot of people, impulsive buying is one of the primary causes of high expenses.

In order to save more, you need to control your expenses, in other words, you need to curb impulsive buying. So, how do you do this?

• Do not use a credit card: If you use a credit card, you tend to overspend, you will be buying things as long as you have not reached the card limit.

• Do not carry cash: If you carry cash, you will also end up buying things that you actually don’t need.

Saving Vs. Investing

Investing and saving are inter-connected. You cannot start investing without saving. Well, there are other ways to invest, for instance, borrowing from friends and family, getting a bank loan, selling assets to build investment capital, etc but saving money and then using your savings to make an investment is the safest way to get started with investing. IN fact, for most middle-class people and lower-middle-class people, saving money is the only way that can start investing. They regularly save money in the bank and when they have a substantial amount, they either buy gold, invest in the share market, or buy properties.

Saving is good but your focus should be on investing. Saving will not give you good returns, but the investment will. However, it is also true that there is almost zero risk in saving money, but a lot of risk in investment. However, if you are investing, there are also various methods to minimize your risk associated with investing. In order to invest, you need money, the easiest way to have money is through saving. I managed to save a lot of money to invest in the share market and start my own business. I was saving at least 15 percent of my income

Saving means depositing your money in a bank account that may or may not give you returns, or keeping your money or other liquid assets in a locker. Saving does not give you profits, it only protects your money from being spent. However, investing means your money will yield profits. You will not only get a principal return but also profits on your investment. Interestingly, investing will not always give you profits, it may also turn into a loss. Saving is the first step of investment. You save money so that you will be able to invest in something profitable later.

Risky Investments

Gambling, betting, Forex Trading, and Crypto Investment are some of the risky ways of making money online.

Gambling means playing casino games, dice, cards, slot machines, etc. for money. You do not require skills to make money from gambling (unless you are playing games like poker), you just need a little bit of luck

Betting is also a kind of gambling. Betting is a guessing game where you make money when you guess correctly. Sports betting is a common betting game.

A lot of people compare gambling and betting with forex trading because just like in gambling you need luck in forex trading, and just like in betting, you will have to guess the price correctly in order to make money from forex.

Even though forex trading has a high risk, I don't believe it is "the older brother of gambling." Forex trading is a legit way of making money, even before the evolution of internet-based forex trading businesses evolved, the forex trading business was in existence and people were doing business with forex trading just like any other legit business. I also don't believe "it is an unhealthy addiction" just like you have stated. A business is not an addiction, business is a way to generate income, generating income cannot be termed or labeled as addiction. Having said that there is a lot of attraction to forex trading because you can make a lot of money in a short time and you do not need specialized skills.

Investing Mistakes

I have made some investing mistakes. One of the biggest investing mistakes I committed was not investing in Bitcoin and Ethereum when I could. Between 2016 and 2018, I was earning Bitcoin. Instead of saving my bitcoin, I was converting it into fiat currency. If I had held Bitcoins, I would have at least 1 BTC.  I also made a similar investing mistake with Ethereum. I could have bought 20 ETH when it was $12. But Alas!

First published on Trendri, in author's name