What do you understand by standard of living how do you think it can be affected by savings and investment. For instance do you think an individual who is actively trying to save and invest can improve their standard of living SIGNIFICANTLY or even maintain the one they already have?
Would you advise an individual to try improve their standard of living as they save and invest since saving and investment is a continuous process?
Standard of living varies from individual to individual and we can not reach a definite conclusion as to what a standard of living is. Pertaining to saving and investment, one has to maintain a balance between their standard of living and their savings/investment. It doesn't make sense for one to maintain a high standard of living while they have less saving and investment. Likewise, it's unreasonable to have high savings while you live below standard of living just to maintain high savings and investment. Maintaining a balance between the two is the way forward.
Sure, trying to maintain a higher standard of living when we have less savings and investment does not make any sense. Some people always make this mistake of trying to maintain a high standard of living just because they have a decent job for this reason they won't think of making savings or investing into anything since they're sure of thier monthly income, without knowing that the job will not last forever. Maybe when the job is no more they start finding it hard to maintain their standard. And yes, living below our standard just to maintain high savings and investment is also a different problem, and I agree with you when you Said about maintaining a balance between the both.... as this is the only way to deal with it.
High standard of living should be that getting in line on how much you are earning and it would be that ideal that you should be that starting on trying out to assess whether you can be able to sustain it out or not. There are those individuals who cant be able to determine or be on their senses in regarding about money management on which as long they can be able to go with their preference in terms of lifestyle then they would actually be doing it despite on having those mismanagement on which these things could cause up that potential problems in the future if it wont be able to handle it well. There are those times or conditions that you wouldnt be minding up that much about those probabilities just because you've seen that it couldnt be happening or something that do talks about that you've been that confident just because you've seen that you can be able to survive or be able to sustain. There are just that those times that because of too much confidence but ending up on having no proper planning and this is where it usually ends up on disasters.
Having savings should be one of your main priority because we do know that at the time that you would be neglecting out this kind of preparation and on the time that shit thing happens then you would be ending up on having that tough situation because you dont have any money that you can make use of. Also, savings isnt only for emergency purposes but also for investment and business on which you can potentially be able to make some another source of income but of course it wont be that giving out that kind of assurance but at least you have done yourself something that could give out that kind of chance or probability.