Save or invest? They represent options with positive results that converge on the same purpose and is nothing more than helping you achieve your goals and dreams.
Which to choose? Everything will depend on your short, medium and long term goals. The truth is that before deciding on an option, you must evaluate and thoroughly know certain aspects. If you want to know what it is, do not miss this reading.
Why is it important to save?
Basically everything starts here, even if in the end you decide that yours are the investments, since most of the cases of those who invest, first generated a saving of certain capital.
There are those who affirm that saving does not generate any profitability. This could be somewhat true if what is saved only goes to spending and not to the search for a plan that increases the value of money.
Saving is closely linked to the ability to invest, since without this the investment opportunity is practically nil. That is, the more you save, the greater the chances of multiplying that money, placing it in an instrument that generates profitability in a given time.
Saving is about periodically setting aside or saving a certain amount of money. Normally it is recommended to allocate at least 10% of our income, however this percentage may vary upwards depending on your salary, needs and lifestyle.
Saving is convenient for you, especially if your financial goals are planned to be achieved in the short term, or if you need to have an amount immediately.
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What are the short-term examples of which we speak?
Buy a new cell phone
Take a trip
Take a diploma
Acquire health insurance
Change of house
These are good reasons to save . Putting this habit into practice will help you keep your finances healthy and allow you to have money available for an emergency or unforeseen without having to incur new debts.
What benefits do you get for investing?
Investing also has broad benefits, especially if your goal is to grow and multiply your capital in the long term. You should know that in the fascinating world of investments there are plenty of alternatives to increase your money, so you will have many options to diversify your investment.
Who can invest ? Any person with a capital and wanting to develop can do so, even if his trade is contrary to the world of finance.
However, there is no doubt that the ideal would be for you to prepare and acquire knowledge about the specific area in which you wish to invest. Another thing that you should keep in mind is your investor profile, if you are looking for low or high risk investments.
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Why invest ? The answer varies from one person to another, from one goal to another. For example, there are those who invest only to generate wealth, others to ensure a decent retirement, others to create businesses and others to guarantee the future of their children.
Among the most prominent options in the world of investments are:
- Raw Materials
To launch into the financial markets, it is not only recommended that you have some knowledge in the field, the best thing to do is to complement it with good advice.
In the same way we suggest that when you invest you do it with institutions certified and regulated by the corresponding agencies, so that your money is protected from possible scams or fraud.
Regardless of the instrument you choose to invest, you must be clear that everyone has a level of risk, no market is exempt from possible losses and everyone has a different return.
Which one suits you best?
From a very young age we are hearing from our family about the importance of saving , but very rarely about the advantages of investing. When we reach a certain age and we have a notion of each alternative, the big question arises, which one suits me best?
The answer seems complicated, however it is not. Ideally, there should be a balance between both actions. Look at it this way, the more you save, the more opportunities you have to invest . And if you have reached a good level of savings, why not make it grow?
Another important point that you should analyze before any decision is your financial situation. If you have accumulated debts, if you have trouble reaching the end of the month. So the first thing is to implement a plan that allows you to clean up your personal finances, and then be free to choose what to do with your money in the short, medium and long term.
As we mentioned above, both have their advantages separately. But if you put the two into practice, the benefits will be greater. Without a doubt, it will improve your standard of living and you will be guaranteeing a stable future for you and your loved ones.
Before making a final decision between saving or investing, it is essential that you have clear both concepts, as well as the scope and advantages of each. Once all these points have been clarified, it will be easier to know which one suits your lifestyle and your goals.
The important thing is that regardless of the step you take, do it with responsibility, do it well, get advice from professionals, carefully analyze what you want and never act on impulse. Uncontrolled emotions can have fatal consequences for your personal finances and it is not worth putting your stability at risk.
Saving or investing is a very personal matter, but whatever your choice, you should know that your life in general will surely benefit in many ways. It is in your hands to give your money the best destination.