Post
Topic
Board Economics
Re: Why we should prioritize investment over saving
by
Bitco55
on 30/03/2024, 12:33:23 UTC
Saving our hard earned money have never been a bad idea, but their are certain things we need to consider before thinking of saving, such as inflation.
Inflation is truly the real enemy to every money that is being saved up, because when the time is right like a year time, when it should be used for it purpose, the value wouldn't be as how it actually was when you started saving it, but on the other hand, if we have been investing that money into Bitcoin, land or gold bit by bit, over the course of a year, the value of that your investment would have added additional value compared to our savings that will be eaten up by inflation.
So too me we should think of investing more of our money than saving it, so that  inflation wouldn't eat it up.

This is true and is also basic logic. The probability of one spending their saved money is very high. This may even be the reason why many lock their savings in a particular account. But that locked money is even going to be affected by inflation more than the money you spend every day. That is why it is advised to either let the money accumulate and get an asset, because let's be realistic, a person earning $20 a month can't buy land or gold with one-time savings, assuming he even decides to save half of his income. Now, we need to accumulate these savings or we pay bit by bit for the asset. The second option most times seems funny and is risky.

Anyways, investment is better than savings, but only money saved can be invested, yeah? You can't invest what's not yours or what hasn't been kept aside for investment, can you? So, both are just as important and are useless without the other.