It's a business anthem that everyone needs an investment that's going to give them a stable source of income rather than their normal salary or take home in a month.
I have read articles by some business analysts that talk about why it's advisable to invest than to save.
No doubt investment is good as it's a means of generating income when a person's normal source of monthly earnings fails like someone working a monthly playing job which is not secure, we know best to have a side hustle in investment.
But still, savings have its own importance to every human out there.
The world presently is currently going through the COVID-19 pandemic and these have resulted in the shut down of many businesses, the initial stage of this pandemic outbreak led to a gross stop and subsequent loss in global businesses.
The stock market went down, the price of crude oil drop rapidly and cryptocurrency wasn't left out, will saw BTC at $3000 plus. Many people weep during this time especially those who had nothing to fall back to or lack enough savings.
The fall in the stock and crypto market was brought about due to fear, many persons were scared to invest because no one can predict when the pandemic will end, and there invested funds can get lost in the market if the pandemic takes a great deal of time and they may become broke financially especially if they have no backup funds.
Even those that weren't scared or wanted to invest weren't able to because money wasn't entering their hands due to lockdown and business being shut down. People were also seen withdrawing their funds because they needed money to stock up during the lockdown and also because of the fear that the market may deep more.
Let's take it to those that have physical investment rather than investment in the forex or Crypto market.
A business person who stocks up his store or business center with goods hoping to make huge sales just before the COVID-19 pandemic hits his environment is likely to be affected financially especially if he is someone with no or little savings to fall back to.
A month back when there was a total lockdown in my country. The press interviewed some business personalities on how they are affected and one of the interviewed persons stated that he is down financially as he invested all his money to buy clothes and other wears as the Easter celebration was approaching and he was expecting to make huge sales as he has been making in previous years but the COVID-19 pandemic and lockdown cut short his dream of making sales and profits.
His situation was a situation of many other persons who put all their funds or a great part of their funds into investment neglecting their savings.
I guess the COVID-19 pandemic has it's benefiting of teaching us life lessons like how we should plan and manage our finances.
Apart from a pandemic outbreak. Savings can also help a person to survive when there is a sudden job loss, business failure, and co which can result from several environment and natural occurrences.
It's important to note that I am not trying to write investment off as it's a means of generating more funds and anyone who wants to be successful big-time got to invest, the importance of investment are numerous and can never be overemphasized
But when investing, one should also note the importance of saving as savings is a good back up plan when an investment goes south. No matter how an individual is sure or certain about his investment, he/she should also have a fall back plan in savings.
