To save or invest?

Philippines
September 5, 2009 11:44pm CST
I had this talk with an acquaintance about saving money. He said that I should not lock up my money on a bank, but instead I should invest it because that was the initial purpose of money. I've thought of it and he does makes sense but I think one should be wise enough to chose where to invest his money. What about those that does not have enough money to invest on a business? Isn't it just right to save enough money first before investing? What do you think?
1 person likes this
18 responses
• China
7 Sep 09
I think if you have perfect safeguadr (e.g. social security, kinds of insurance) and you have stable work, you can save less money, and invest a lot, otherwise you should do the oppsite way. If you want to invest, you should have the goal or some specific ideas, don't just fellow others advice.
• Belgium
7 Sep 09
I think it is best to invest money rather than keeping it in the bank. If it is kept in the bank the worth actually decreases as most of the times inflation is more than the interest we get from the bank. But it is also necessary to have money for some emergencies also. I normally follow one thing. I keep enough money in my bank so that I can sustain for atleast 3 months even if I do not get salary. Rest all money normally I invest.
@xannebull (1806)
• Philippines
7 Sep 09
i am in favor of investing your money but you have to save first and make it grow, until you have enough money to invest on something. having a business is a good choice but see to it that you will earn from it rather than getting fraud so that your money will grow faster..
@Eisenherz (2912)
• Portugal
7 Sep 09
Well, I am undecided on this matter. I think for one to invest on a business, one must possess before hand a good knowledge of the market and really measure the steps about to take. In that case it's preferable to invest, otherwise it's best to save your money.
@sasalove (1710)
• China
7 Sep 09
In my opoion, the invest premise is to save enough starting money to proceed. But it depends on how large business you would like to proceed, then determined how much you prefer to save. Sometime I would like to say saving money can be the same process with the investing. Just like a friend of mine, he saves money in the fixed funds or stocks, the money can earn money in the bank, once the time is matured, he can draw the money out to run a bigger business.
@hotsummer (10436)
• Philippines
7 Sep 09
in a way it is true. but if you are not experienced on how to invest your money or where i think it is better to save it first till you have any idea where or how you will invest it. cause before my money lose some money because they failed to invest well. anyways, that is nothing much but only some amount. i do just save my money, i don't invest it. cause i am not good at it. i just hope that i get to buy some good items out of my money that i have saved to enjoy my earning. cause it is useless if i will just keep saving without buying anything. but there are good things if you will wait first before buying. but i am quite impatient person sometimes i want to buy fast.
@earthsong (589)
• United States
7 Sep 09
People should save so their banks can invest. You can do both and see which earns you more money and all your money isn't tied up in one or the other.
@lsslcg (49)
• China
7 Sep 09
I think your friend is right. You should not put all your money in the bank for the interest, though saving is safer than invest. Accutually, investing is not risk as most people thought. When you have enough finacial knowledge, you will regard investing as a piece of cake. Of course, put all your money in investing isn't wise. Put about 50% of you money in investing and the rest for saving maybe right for you. Good luck!
• United States
7 Sep 09
If you do not have enough money just put it in savings. If you can spare some money or have a high risk level invest it. Hire someone to invest on your behalf. It all depends on what money you can lose and what your risk level is. Think carefully about your risk level because that will dictate if you should invest or save. I hope this helps.
• Philippines
7 Sep 09
For me, money is always better to invest than to just save. In saving, your monjey might grow a bit but you do not learn anything. Besides, a lot of banks are now closing and depositors are not being informed. Rich businesmeen did not became rich because they save their money, but they decided to invest them very wisely. In inverstment, there is no exact money which means one can always invest even $1. I invested $10 for an ebook which I can resell it for the same price. So far, I am making at least 3 sales a month considering that I am only online for 2 hours a day. Thanks!
@dreamr802 (987)
• United States
7 Sep 09
I personally like saving...I know that with investing you have a chance of losing your money...but then again I really don't have a lot of money seeing how I am just out of school...but yeah, maybe when I am more financially stable then I might look into investing some of my money.
@vandana7 (64799)
• India
6 Sep 09
Hi freakme, starting investment early on in life has terrific compounding effect at later stages. Obviously u dont have enough for investing as well as saving. Nobody has that - especially in the initial stages of their careers. What u can do is religiously set aside about 20 percent to 33.33 percent of ur savings. These can be invested in professionally managed instruments like Exchange Traded Funds, and Mutual Funds, if u dont really know anything about stock markets. Good thing about these instruments is u can buy in much lower numbers. Personally, I am impressed with ETFs as they give access to commodities markets as well. There are stock market linked retirement plans offered by various banks and insurance comanpanies. U could consider those as well as they will be managed by professionals. And any amount u save - it will eventually seem inadequate as inflation will eat away its value. Therefore, investing part of it regularly will help u combat inflation and rebuild that lost value. Hope I have answered to ur satisfaction. Best of luck with investing. :)
@patofgold23 (5075)
• Philippines
6 Sep 09
i think if you do a balance of both;;;it would be best... you save enough for immediate needs...then you invest some and try to make more (sometimes it needs money to make money --- but you only invest what you can afford to lose...more of a calculated risk...)
• Philippines
6 Sep 09
to get the most out of your money,you should invest it in different money baskets.if you are still working,you can open a time deposit account.you can also set aside some amount in a personal savings account so you have money in case of emergency.when you have more money,you can start a business.you can also invest a fair amount in mutual funds.
@srikandi19 (3393)
• Kuta, Indonesia
6 Sep 09
I think more better if we saving first the Money. then after have a lot of money in deposit bank, we can use some money to invest. But the decision in your hand cause you are have the money.
• Philippines
6 Sep 09
hi there..i'm more in favor of investing your money than just saving it...your money should work for you.If you invest it, it will doubled, tripled..etc...invest first in a business requiring small amount of money before targeting the big once....
@thhoon72 (1010)
• Singapore
6 Sep 09
Hello there, I totally agreed that you should not lock all your money in the bank and earn miserable interest. Of cos, putting money in the bank is the safest option. I would recommend to put maybe 40% of your saving for investment. To me investment doesn't mean investing in a business, it is more of investing in some unit trusts, low risk bonds or even stocks. But of cos, you have to do some study or research first before making the investment. Cheers =))
• Philippines
6 Sep 09
I think that your acquaintance is right. Putting your money in a time deposit would be better than on a saving account in the bank. So while your money is small or while my money is small, I would like to put it in time deposit or they call it certificate of deposit. When it's a little bit bigger, then I could consider investing in some good areas of investment.