Have you ever had that chance to hold a certain amount of money, and you have no idea what to do with it? If you ask people, some of them may advise you to save it, no risk involved, short-term, and instant access to your money. Some will tell you that you should invest it, medium to high-risk, medium to long term, and it is harder to access your money, and that there’s a chance that you might lose it all or it might grow, fruitfully. So if by any chance you come across this situation, what would you do?
Saving
What is saving?
Saving is putting your money aside to eventually come up with a sum, for it not to be spent because you ought to spend it for something; for a goal that you have set for yourself.
Why do people save?
Generally speaking, saving is what you do when you ought to spend for something: new house, new car, for family funds, etc. Oftentimes, saving is usually done by people who think long-term because they want to be ready when an emergency complication pops out; they save in order for them to have emergency funds whenever, wherever.
Why you should save?
If you are someone who is not fully confident in risk-taking; someone who is not ready to play in the big aquarium, then saving is probably for you. Minimal to no risk at all, and you will have complete control over your money. It is also important to remember that saving should be a guarantee. I mean you should start saving only if you are fully decided, fully disciplined about it.
One great tip for saving is to set aside 10-15% of your income to your savings. Maybe start out at 5-8% and grow from there eventually. This is a good practice for you in maintaining goal setting and delivering expectations.
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