Today I had a long debate with a colleague of mine. He started by telling me of he’s idea of saving Ushs 50,000 every day for the remaining part of the year and on calculating we realized that would fetch a little over ush. 13,500,000 which is USD3688. He had already started on this campaign which he told me had kicked off with at the start of this year 2018. After listening to him, I brought in an argument; why would one have to keep cold hard cash somewhere safe when it could have a chance of generating an acceptable rate of return over the same time. This meaning by the time of collecting it, it would be much more than if it had been in one place.
The two have a common goal.. and that is financial well being which is key to financial independence. Saving money only becomes wrong if the intention is to build wealth. Yes this is a less riskier way of accumulating wealth but I hate to say this it looks more of the cowards' path to getting wealthy. The wealth accumulated is limited, it can't go beyond what you saved over a particular time which is certainly not the best way to grow wealth. The fear over losing money only prevents one from making more money which he could make if the returns got good. And yet still this volatile economy could have one withdrawing the savings at a time when inflation is at it's peak.. The money obviously wouldn't be the same value it was earlier.
With investing, one has a potential of getting much returns compared to savings. These returns are seen in the profits when one sells at a higher price than he/she invested.. increasing one's networth. The wealth keeps growing in value over a period of time, and during this time it continuously fetches some interests. Reaching bigger goals in life is worth the risk and given the fact that you can calculate the choice of financial security to purchase, this gives one advantage of lessening the risk.
I encourage saving if the main goal is having money to care for any emergencies or cover some short term goals like purchasing a gadget, organising a function.. But when it comes to accumulating wealth, I advise investing, which is a much bolder move to financial freedom.
And given the dip in the crytptoassets at the moment, this would be one hell of a venture to give a shot. This is where money starts working for you even when your asleep.
This is just my take on investing and saving.. I would love to get your opinion on the two.