Savings is good and investment is better. Both are aimed to handle your money to maximize its capability and potential to grow. Investing is to grow money faster than savings. It is usually into buying and selling. We invest by buying an item, a property, a share or a stock so we can sell them and gain profit from the transaction.
Where should we invest?
Some people seek the advice of bank managers, financial brokers or financial consultants where to invest their money. These financial industry experts would most likely guide you to the financial institution that generally requires investment in long-term. Like savings, investment also is better when given enough time to grow. It requires close monitoring though than just saving your money in the bank.
How much should our target savings amount be?
We put up an investment because we want to accumulate our money and build wealth for us and for our family. How much then should our target wealth be? When should we stop accumulating savings?
As long as we have income, we should not stop saving. As long as we still can work, we should still save. We need to build wealth because we want to stop working in the future. Wealth accumulated shall provide us income when we stop working. The more it is much needed when you get sick or disabled. Instead of we working to earn, the yields of our accumulated wealth or the returns of our investment will serve as our income when that happens.
What if you cannot save?
Currently having an income that is not even enough to make ends meet, and much more to save is not an excuse. Savings supposedly do not have exemptions. You might not be able to save now, but it does not mean you are not going to send your children to school. Presently having no money for savings or investment, does not mean you are exempted from growing old and going into retirement. In the race of life, being responsible is to sustain your family now, and continue sustaining yourself and family in the future.
Set long-term financial goals and decide how much and where you should put your investment. If your income is not enough for savings, find ways to earn other income by using your spare time. It is better to have more than one source of income while you are younger than doing it when you are older and more likely already weak to make it happen. No matter how small you can start with savings, it is important that you already have started. Research for advice and find a financial advisor to guide you to where should your money be invested. The more you will know about it, the lesser the risk because higher financial knowledge lessens the fear of risks.