1) Savings minimize risk, while investments maximize growth.
2) Investments are a possible loss, but please realize that stagnant savings mean a definite loss. its because of in investments, if you do make money, it may not be as much as you planned. but in savings, well... Because the money in your savings isn’t growing with inflation, it’ll
be worth less as time passes. In about 20 years, that $5,000 you’ve saved up might last you all of a month.Simply put, you may as well dig a hole and dump your money in it.
3)Savings are usually tied to wages. Most of us save X percentage of whatever we get. This creates a whole host of problems, because our wages aren’t as reliable as most of us assume. Wages are subject to a lot of variables. Falling sick, collapsing companies, retrenchment, or just plain getting old.
4)Investments, on the other hand, aren’t usually tied to our working life. If you’ve invested in a growth plan, that growth remains constant, even if you’re fired or retrenched. Investments are the independent, self-sustaining members of your financial family; savings are the whiny cry-babies that need constant feeding.
5) Saving Will Never Make You Rich, This should be common sense, but it eludes too many people. Saving doesn’t actually raise your finances, it just preserves a portion of it. And no tycoons ever got rich by diligently saving X% of their income for Y years. At some point, all those savings must come into play. Unless those savings are tapped for an investment of some sort, they will never add money to your bank account.
Financial freedom isn’t just about security; it’s about being able to experience life without worry. Savings alone will never give you that, because the entire basis of saving is anxiety. It’s about preparing for emergencies. And without investments, you’ll never be free to leave the bomb shelter and first aid kit.
3)Savings are usually tied to wages. Most of us save X percentage of whatever we get. This creates a whole host of problems, because our wages aren’t as reliable as most of us assume. Wages are subject to a lot of variables. Falling sick, collapsing companies, retrenchment, or just plain getting old.
4)Investments, on the other hand, aren’t usually tied to our working life. If you’ve invested in a growth plan, that growth remains constant, even if you’re fired or retrenched. Investments are the independent, self-sustaining members of your financial family; savings are the whiny cry-babies that need constant feeding.
5) Saving Will Never Make You Rich, This should be common sense, but it eludes too many people. Saving doesn’t actually raise your finances, it just preserves a portion of it. And no tycoons ever got rich by diligently saving X% of their income for Y years. At some point, all those savings must come into play. Unless those savings are tapped for an investment of some sort, they will never add money to your bank account.
Financial freedom isn’t just about security; it’s about being able to experience life without worry. Savings alone will never give you that, because the entire basis of saving is anxiety. It’s about preparing for emergencies. And without investments, you’ll never be free to leave the bomb shelter and first aid kit.
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