When you want to have economic Good Finance there are two ways you can follow: save money or invest it.
Sometimes you can follow both at once, but when it comes to deciding which one is better? In this note I want to help you with this decision, know the advantages and disadvantages of investment and savings.
It depends on the amount
To save only one thing is needed: allocate a percentage of your income to this end. To invest, on the other hand it is necessary to have a stronger amount that allows us to have profitability. In other words, I could say that saving is a step before you invest your money. And it is that with a good amount saved your money can be invested and grow faster.
Whether you want to save or invest you must be a disciplined and patient person. Disciplined because you should not allocate what you have to save, but a planned percentage of your income. Patient because for your money invested to generate profits through a bank you will need to let it move not for months but for at least a couple of years.
If you are going to invest in a business
When it comes to investments, high-risk ones usually have greater economic benefits in a shorter term. However, if you invest in a business, or perhaps in the stock market, I recommend that you do not invest more than you are willing to lose. And that is how you can win, you can lose.
Another tip I give you, in terms of investments, is not to bet on a single player. If you are going to invest in business, it is better to have a plan B like this if a business in which you invested did not bear fruit, you will have money for a better option.
If you do not have much money saved yet or if you plan to start allocating money for the future, it is best to open a savings account. When in this savings account you have an amount that allows you to do it! This will make the interest generated by your capital grow.
The ideal amount to invest should be an amount that you are not going to use in a short term so you can start the fund for longer (years) and generate more income. It’s all about patience and your financial education. Keep reading us on the blog!