Saving makes you feel secured for your future expenses, but the money has its time value, which means that 1 USD today will worth less in one year later. While the money is being depreciated, should we keep saving? Here are some concepts about the saving:
- Money has its time value: Saving in the bank might not be a good idea, especially in a high inflation rate country. It is even worse when you keep the money at home without any gain. In this case, you need to find a way, like doing business or investment, to increase the value of your asset.
- Save to invest: One should have financial planning and keep a portion of income for investment. It can be on the stock or real estate.
- Spend less, invest more: Some people keep believing that saving is the only way to increase the wealth. They do not know the goal of saving is to invest. They should also understand what is spending and what is investing. Inviting good friends or seniors for a meal is not spending, but investing in socialization. It increases your value. One shall not be mean to buy him/herself a book or paying fee to join a good seminar. Investing in yourself to increase the knowledge is a very worth investment to increase the ability to earn more and grab new opportunities.
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