Why do saving and investing is important?
Before we answer the question why do saving and investing is important. let me ask you a question why do you want to save first?
If you take a moment to answer that question you may be thinking of the future. It maybe for yourself or family and kids future. Things like owning a house, car, education of your kids and a future businesses that you thought off. It's great because somehow you thought of something in the future and to tell you, the people I knew often comes with a certain age before actually thinking of saving. Usually they are people at 30's to 40's.
Because at early 20's and teenage years they focus on themselves and their wants in life. And when they reach a certain point in life specially when they are engaging to marriage that's the time they only began thinking for their own family.
Now if you fall in younger stage in life to think about these thing is great for you because you have longer period of time planning for it. Now if you are in your late 30's above, it's not too late because as long as you can do things and with a proper mindset you can always start today and move forward.
Basically it's pretty simple by knowing how to properly save your income you have the chance to invest in or to grow what you save. Saving is the basic step on the process of growing the money. As long as you don't have the discipline to put aside some fair amount of money you can't do too much on your investment.
Now if you're already a saver in the bank, which is good but not fair enough because it only yield 1-3% interest annually plus tax. It's a good because you can always an emergency fund to count on. But be aware that it is easily to withdraw and temp to spend it. So it's better you find it a good investment vehicle to grow in time.
Now what comes to your mind when you say "Investment"?
Actually these are some meaning has to do with investment.:
1. Investing is putting time to learn, to spend on family to have a better relationship, to attend seminar and other productive things.
2. Investing is giving some amount of cash to buy books that can help you sharp those skills and learning additional information.
3. Investing could be effort that you do that don't require large amount of money. Like doing your job great or managing your business effectively.
4. Investing could also buying things that appreciate in the future or gives you return. Like putting your money on stocks, bonds, real estate, business and other things.
Money Perspective
As you began to think of the Big Picture it doesn't necessary all about money. It also involves mostly of time and hard work.
Now to begin with, saving could be hard unless your current lifestyle don't fit. For example:
Even a 6 figure earner with 6 figure expenses is still no difference with an average earner who spend all the things he earn leaving no saving at all.
There are saver that they are just saving to buy expensive things. There is no wrong with that but it could be useless if you can't use that in the future. There are things that could also add up to your expenses like buying stuff that that do require monthly maintenance to sustain.
There are also people who intend to buy what wealthy people could afford to buy. Not even thinking if they really need it right now.
Savings could be the very first thing you need to do to move your financial status. Not addressing the issue could cost so many years of wasting money that could already works for you.
Living beyond your means could be very expensive and living below your mean could be very hard. The two has always has impact on your life and your family.
Here are some difference of the two:
1. Living beyond your mean could cost very high saving less for the future. That could also mean pawning or selling any stuff that has value. That is why every expert advice buy the things that is worthy today and for your future.
2. Living below your mean on the other side is completely different on the luxurious living. Settling for less and delaying gratification to enjoy in the future. Robert Kiyosaki a Financial guru the author of "Rich Dad and Poor Dad" mentioned on his book that living below your means kills the spirit but expanding your means are the appropriate. Which is simply telling expanding yourself first in order to live not less but according to your mean upward.
I know God wants us all to prosper but unfortunately the reality is not every individual has the access to all the information and will power to move from point A to B.
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| Photo taken after attending a financial seminar at IMG Head Office in Makati City |
A lot of group and experts are conducting seminar and doing their advocacy to the financial education of Filipinos, doing their job to increase the financial IQ of people when it comes to finance. I am really grateful for those individual who share their expertise on the field and that is something noble thing to do and very fulfilling to accomplish.
By giving value to the idea of saving and investing. You'll help a lot of people around you not only your family and self.
"Blessed are the man who gives hope to another person"
May God bless you and have a nice day!
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