Quote from: Webetcoins on Today at 09:26:25 AM

Quote from: TEBTC on March 25, 2024, 06:38:16 PM

It is perfectly said and I totally agree with the writer of this article that investment is key if we are to have financial stability because with the rate of inflation on the prices of goods and services money is fast becoming valueless so while you are quitely saving that your money it value on the prices of goods is reducing but if you invest it into one small business no matter how small the business is there will always be return on investment.
In that way your money is growing rather than reducing

Are you forgetting the fact that investments can fail as well? What if you started a business and it failed and couldn't earn you any money at all? All your money is gone just like that, and since you didn't have any savings and have used all the money on the investment, you are now left with nothing.

This is why, I never recommend prioritizing investment over savings, if one thinks they can afford it, they should do both simultaneously, they should have one wallet or account for savings and another for investment and they shouldn't use their savings for investment purposes so that if they make an investment in the future and it doesn't work out, they would at least have some savings to give them some back up.

This is the mindset of people who are learning how to invest and are starting to make a small profit from their investments. They think they will always win in their investments and that making money is easy and they don't need to save or have a backup plan.

I have a cousin and he is only 23 years old. Before the Covid pandemic happened, he earned a lot of money through business and investment, every day he could earn $200-$300 and it was easy for him. And he started to become arrogant because he believed he was good enough to make money without having to worry about anything. But unfortunately, when COVID happened, his business and investments went bankrupt, and he lost everything. Now, he has to work as a laborer and save every penny to support himself. If he had tried to save a lot of money that day, I believe that his business would not have gone bankrupt and he would not have fallen into the tragic situation he is in now.

Saving is really important, even more important than investing.