Savings is usually called saving for a reason, but most of us forget the reason it is called savings and how important it is in our lives. Some of us see savings as an investment, but is savings really an investment? Investment is something that promise to give you an interest or profit over time, but if you look around you, its almost impossible to find a savings opportunity without profit. Savings is not supposed to have any risk, it is supposed to have little or no risk, but then, these are my understandings of savings and investment. It is always advised to have savings, its a wise decision to make as an adult because
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Savings are kinda like an emergency fund that saves us from unexpected expenses or situations. Some of these unexpected expenses could be health related, having to fix your car or something in your house, having to pay for a trip or a night out you didn’t plan for, but unexpected situations like losing a job or a source of income, how long do you think your savings will sustain you or save you.
Some people could lose their jobs or source of income right now, and their savings will last them for a week, or a month. Depending on how much their savings is and their lifestyle. Your savings can only last you depending on your lifestyle if you lose your job right now. If you lose your job and try to sustain your lifestyle without having a source of income, its only a small amount of time before you run out. Money is leaving your account more than it is coming in, which is not going to balance your finance. Some people have enough savings to last them a month or two while they search for another source of income, while others don’t have enough savings to last them a week. These can lead to them being in debt, they find theirselves borrowing money to survive and sustain their lifestyle till they find a new source of income.
Investment on the other hand, when done right can provide a source of income that will let you survive or last for an indefinite amount of time till you find a new job. This is why it is always advisable to have an investment, but investments are risky.