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Quote from: blckhawk on Today at 08:50:14 AM

Quote from: Dr.Osh on Today at 03:04:43 AM

Quote from: blckhawk on February 19, 2024, 08:45:29 AM

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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.

Exactly, that's another reason why savings alone won't be a big deal in the long run, inflation will definitely destroy that savings in no time and when you know that you've got 1k USD in savings but then you will be surprised that next month, it's probably valued or worth 998.9 USD, that's how vicious inflation is, that's why when I asked a friend that's been working as a financial advisor, they'll almost always say that it's a good idea to be investing instead of saving alone. Another thing to consider about investing is that you're going to need to balance a life worth living and investing because if you're just investing your money alone and you're forgetting to have fun, the cycle of monotony and despair will be on you and you're not going to reach the age of retirement if you're only focusing on those investments and not having fun, don't put all the money in investments, try to get a vacation at least 2 times a year and get a hobby.

Investment and saving have various advantages and disadvantages. You have a valid point that inflation would be against your savings plan in the long run. This is why there are disadvantages to saving, but rather, you still have the saving, and it could be useful one day to you regardless that the purchasing power has reduced. Now let's get over to investment. If you invest that $1k in something and later do not receive any return on your investment,. You will feel regretful, since we know that investment is high-risk, and the nature of your investment determines the amount of risk you are taking.

So i think both are crucial. You can invest and, at the same time, still save a little. I cannot prioritise one over the other, as i deem it necessary for both to put into consideration.