Saving vs. Investing

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In this day and age it is hard for anyone in the shrinking middle class to even think about saving or investing. However, no matter how difficult it may seem it is possible because it all comes down to our spending priorities. In a hyper consumerist society we live in most people are focused on consuming through spending rather than either saving or investing. After all consumerism is what drives the economic powerhouse that is America. So why then is it that the wealthiest people in our society are savers and investors rather than solely consumers. The argument can be made that is because they have a greater disposable income but the fact is part of the reason why they have money to invest or saved is because they did so in the first place. 

 

This begs the question should you be focused on saving or investing to start your journey through greater disposable income a and a higher level of wealth. There are two ways to look at this, the first being from a a personal standpoint and the second coming from your standpoint as a business owner. Now if you don’t own a business the second won’t apply to you but if you do is important to understand that personal saving and investing will be vastly different from a saving and investing in regards to your business. 

 

Let’s take a look at saving a vs. investing on a personal level first. In my opinion saving on a personal level should focus on the eventuality that you’ll invest that money because as real estate mogul Grant Cardone put it best “Money gets bored”. And it’s true if you have money sitting there in a savings account it will find an emergency or flash sale to be spent on. Having savings just to use it in a consumerist way is a terrible waste of a great opportunity to take this money and invest it in a way that makes you double or triple your wealth. I’m not saying don’t ever save to the extent that your bank account is always empty body to have enough to invest you should, and quickly. Investing can feel very uncomfortable at first when you’re just starting how because you’re used to instant value when you’re spending your money but as time goes on your realize how much more you’ll be able to spend just because you invested in the first place. I would advise you to do your own research on what you should invest in based on your preference in returns, budget, and appetite for risk but personally I like a very low risk investment opportunities like index funds and foreign exchange trading. 

 

Saving on a business level is the same as on a personal level where you should be saving in order to eventually invest into your business. You’re saving goals as they pertain to what you will and eventually invest and must be very clear as you can find yourself over saving and creating stagnation in your business. The next thing of about to say will take some people a long time to swallow but I have to be blunt with this point because there is no greater truth when it comes to business than what I’m about to tell you. If you can not, will not, or do not invest in your business you do not have a sustainable business and it will fail. The way you figure out what to invest in when it comes your business is simply never settle for where your business is currently at. You should always be looking to expand, to reach more people, to gain a higher profit margins, and to find more ways to inject money into your business that eventually turns over your wealth and your business’ success multiple times.