What Is Better Than Saving For The Future? Let's Find Out.
The world has taken a new turn when it comes to anything that involves money. We humans have also done the same but in a uniquely different way. Some of us have developed the habit of either spending, saving, investing or mixing it all up, while some of us can't differentiate this entities from one another.
We all want to make money, but which of the habits above can make us millionaires. As far as am concerned we need the right mix of the habits stated above to make enough money to take us out of the rat race, otherwise known as the hamster wheel problem.
The Spending Habit: From time immemorial, this habit is one of the first we humans adopt. Every one of us wants the luxury life, but have we noticed that the more we spend on material, irrelevant things the more we want such things? If the habit of spending is what has the highest percentage in how we handle money, am sorry to say, we will be stuck in the rat race longer than we ever thought possible. If all we do is buy what we want rather than buy what we need, this will pose a big challenge as it will become a disease if care is not taken. Our lives will improve a lot if we pay more attention to our needs rather paying attention to our wants. It’s a good thing to want, don’t quote me wrong but there’s an attitude we “need” to adopt that is going to cater for our “wants”. At this point I guess we can easily distinguish between wants and need, nevertheless, I will still explain a little bit further;
In economics, a want is something that is desired. It is said that every person has unlimited wants, but limited resources (economics is based on the assumption that only limited resources are available to us). Thus, people cannot have everything they want and must look for the most affordable alternatives.Wants are often distinguished from needs. A need is something that is necessary for survival (such as food and shelter), whereas a want is simply something that a person would like to have. -wikipediaThe Saving Habit: This is a habit we all should possess, why? Because it can “almost” put an end to most of the challenges we face monetarily, almost in the sense that it is temporary i.e. it may not last for long. As important as saving is, it shouldn’t be at the expense of our needs because am sure we all know that one person that can starve all in the name of saving. Moderation needs to be practiced when saving because if we save at the expense of our health and well-being, money saved will be used to get rid of the harm caused by our negligence to the needful. The question is why do we save then? Ask people around you and the responses you will get will amuse you; a shoe lover will tell you he/she is saving for Christian Louboutin, funny right? While someone else will tell you he/she is saving to buy a house, reasonable right? Saving should be mastered for the right things. Do you know what the best reason for saving is? The next habit is.
The Habit of Investing: Now here we are, whether we agree or not this is the habit we “must” all adopt, why? Because if done properly with reading, research and guidance from experienced people it will take us out of the rat race forever, enhance our habit of spending and saving too. The biggest world economies house the smartest investors. Once we master how to invest our “savings” it will provide a permanent solution to our money problems. Using the world most famous cryptocurrency, BITCOIN, as case a study we will see why it’s best to invest our savings. Earlier this year, one bitcoin was worth a little over $400 but as at this morning it is worth more than $900, wow! The savers bought it when it was cheap and they are smiling right now, but guess what, the investors are “laughing out loud”, why because they invested their coins in a lot of profitable businesses and the Returns on Investment (ROI) was huge. We can now see that it pays to be an investor more than a penny saver.
On a final note, if we invest wisely, we can be able to afford not only our needs which are most important but our wants as well. Pick up a book or two about Investing, learn about money, and educate yourself. So instead of buying a “want” worth a million, invest the money in something profitable and let the ROI buy you the “want”, that way you don’t only have your “want”, you have an investment as well. Remember, “Poor men think of how to save money, rich men think of how to make more”, which would you rather be? Be wise to identify a good investment, be smart to know how much to invest. Spend less, save more, invest your savings.