Post
Topic
Board Economics
Merits 1 from 1 user
Re: Why we should prioritize investment over saving
by
Dr.Osh
on 25/02/2024, 03:04:43 UTC
⭐ Merited by blckhawk (1)
Easy answer, saving isn't giving you profit, it only gives you the same amount that you can pull out whenever you need it in the future and saving is vulnerable to inflation especially if it's the piggybank kind of savings meanwhile with investing although you're risking the money because it grows or regress depending on the value of the investment but the point of investment is that the savings is growing and giving you a profit so totally agree with prioritizing investment over saving but the only advantage of saving in this comparison is that, you can pull out savings anytime as for investment, either you pull it out prematurely resulting in small profit or loss because you happen to pull out the investment at the time when the value of the investment was tanking or lower than your initial entry to that investment.
Apart from that, saving always has problems with inflation. So, the value of your savings could decrease without reducing the amount. However, with investment, we can generate additional income at any time.
However, I also think that it would be better to prioritize investments because they can be a very good thing when we have entered old age, or perhaps retired. The investments we make today can be a new source of income, and in fact, in many cases, people who focus on investments have much more income from investments than from their main job. However, investing is a very good thing, but we also need to save because we don't want to sell the investments we have when we need money in an emergency. at that time, savings are very necessary.