Quote from: ajiz138 on July 11, 2023, 01:09:18 PM

Quote from: Uruhara on July 11, 2023, 11:53:43 AM

Quote from: Adams0001 on July 11, 2023, 09:40:20 AM

Exactly, if you save money, you will have more money to save when you have a source of income, however other individuals prefer to invest their money in order to make more money. Saving is typically done for the short term, whereas investing is done for the long term. In the short term, it's a good idea to invest your money rather than save it. Saving is just a normal thing that you can't get anything back from, any amount you keep in a luck key that is the money you will see, but when you invest you will get a high profit back, as for me i would rather invest my money than save it.

I like your mindset about preferring to invest the money you have instead of having to keep it in savings. Because by investing, of course you can expect your money to grow or have profits over time. But investment will only get sweet results if the investment is made for the long term. But actually we should also always have cash or money that we save that is easy to use in unexpected situations such as when we are sick or something else. So having emergency savings should still be one of the priorities that we also have to pay attention to.

Usually those who have savings to support life for more than 6 months will dare to invest because it will not interfere with the investment that we are making because there is already a reserve fund that has been prepared, if later there is an urgent need of course the savings will be in use while the investment will not be disturbed by our situation, so indeed this must be matured and first create a new savings fund to continue investing..

I think there are still many people who make the mistake where they invest but don't have a reserve fund, but when there is a need, the investment is withdrawn because there are no other assets besides the one invested, so that is what must be considered where emergency funds are important.

Exactly this important point is what I also mean. Because having a reserve fund is something that everyone must have. Because without a reserve fund or emergency fund, sometimes our financial planning can go awry in the future. if there is an urgent need that cannot be postponed or must be paid immediately. Emergency funds must also be stored in a form that is easy to use or easily traded. So most people keep a fixed form of reserve fund in the form of fiat money. because it can be directly used whenever needed. and remember an emergency is a condition that must be handled as soon as possible so it will be very difficult if we have to use a long time to sell goods or exchange our assets first so that they become fiat and can be used for payment.