Quote from: kenpachiofficial on Today at 10:38:11 AM

Quote from: TravelMug on Today at 10:21:23 AM

Quote from: kenpachiofficial on Today at 09:30:48 AM

Consumption smoothing is the practice of optimizing our standard of living by ensuring a proper balance between spending and saving during the different phases of our lives. Those who overspend and put off saving for retirement to enjoy a higher standard of living often have to work longer or reduce their standard of living in retirement. Those who over-save will live a more frugal lifestyle while working to enjoy a better lifestyle while retired.

In each case, the overall standard of living is less than optimal.

Now, how helpful could this be during times of inflation?

At any phase in our lives, we really need to have balance, our spending vs consumption and then on the other hand saving for the future, at least in the next 10-20 years and built generational wealth. Of course, we can't discount the fact that inflation it's effect? it erodes the purchasing power of our money. But at least if you have said enough and really knows a thing or two about financials it won't affect you in the long run and you could retired with your money still has that value despite the inflation. So moral lesson here? Start to invest at a young age so that when you gets old you will enjoy your life to the fullest regardless of the current economic situation on the country that you live in.

I get your moral lesson really well, investing from a young age might seem risky for some people (reasons best known to them). I for a fact have started my investment journey, it doesn't matter the risks, everything has its risks but the goal is to be able to live a well enough life even at times of inflation and also like you said build generational wealth. It is said that if you plan well and do your best, you will succeed. I pray we all succeed.

When we hear the word "Investment", first thing that comes to our mind is money and risk and that is true. It's too risky especially if you're earning a little amount of money and you are trying to balance you salary for your needs, savings and investment. It's quite difficult at first but as the time goes by, you will used to it. Same to you, I started to invest my little money without thinking the risk because I only put the money that I can afford to lose, I'm confident that time and I don't care if the money that I invest will grow or lose. When I got a job, I told myself that I would secure investment and emergency savings first because I knew that anytime, the money I saved in the bank could be devalued because of inflation, unlike investment, which when you put money into it, it earns more than the interest rate that the bank gives us annually.