Here’s Why Saving and Investing are Important


The importance of saving and investing can be explained by two words: stability and comfort.

If you enjoy the finer things in life, you would only be able to achieve these things by having money. It doesn’t matter how hard you work for every single paycheck that you receive if you don’t learn how to set aside money to deposit to your savings account.

Not saving up or investing causes you to live from paycheck-to-paycheck and regularly trying to make ends meet. This is not an ideal situation for anyone, but there are thousands, if not millions, who are actually experiencing this on a daily basis. Don’t allow yourself to be one of them.

How to Save

Be smart about saving; don’t just settle on a portion of your paycheck to put in the bank. Calculate how much you need for your everyday meals and transportation budget, set a portion for anything (say movies, your new video game, etc), and then check how much would be left. You can deposit this to the bank.

Be sure that when you make these calculations, you’re actually living within and not above your means.

For the following month, if you didn’t spend the money you set aside for anything else, then add that to your savings as well.

What to Invest In

Investing can be daunting. It shouldn’t be. Investing is beyond the stock market, bonds, mutual funds, and more. There are many ways to invest that doesn’t involve dipping your hands into the Stock Market. For this article, we will only refer to investments that have a positive impact on your overall expenditure.

You can invest by simply making sure the car you purchase won’t make you pay more for gas. By this, we mean you can get a hybrid car or at least a very fuel efficient one. You can even buy one second-hand and in good condition. This alone would save you thousands of dollars for the car, and hundreds of dollars for the gas.

If you’re not the driving type, you can simultaneously invest in your health and future by getting a bicycle to drive to and from work instead. The bicycle can help keep you fit and healthy, and you never have to worry about gas and car maintenance. This is ideal if you live close to work.

If you’ve already practiced the tips above, you might be ready to start delving into Stock Market investment. It may be a scary step to undertake, but there are many benefits to this next step. It would not be without risk, but the gains can be worth it.

By choosing to monitor what you spend and becoming a smart consumer, you can be well on your way to saving consistently, effectively, and efficiently. Not only does this help you stay financially secure, it will also allow you to enjoy the good things that life has to offer.