It's all about balancing up your short-term liquidity needs with your longer-term goals. You can't just put your money in the bank and hope that it will grow at a rate that will sort out your future - low bank deposit rates and inflation will put paid to that. Balancing up your risk profile and the time parameters you have in mind, you should look to have the right blend of putting more money away for near-term purchasing requirements with investing for your future.
I agree. I'd prioritize savings first, but I still highly recommend investing if and when you get the chance. If you're working on your savings, you could easily divert a percent or two to a separate account to build a mass of money to use to jumpstart your investment portfolio without destroying your savings capability. I don't recommend rerouting your savings allocation though - investments are for making money, and savings are for getting out of trouble should it arise. Do not jeopardize your savings trying to make more money.
Yes but that is why you need to use your head when investing. If he would have been properly diversified, a whole company going completely bankrupt still wouldn't have made more than a small momentary dent into his portfolio. Usually people set limits such as 10% or 15% of their portfolio MAX per company, that way even if something incredibly unlikely happens with one of the bigger holdings it won't destroy more than a small part of your investments.
There is a vast difference between savings and investing cause saving can't provide good money whereas investing can give huge money within a very short time so if a gig wants to earn then can invest in a FreshForex broker as they will also give you 300 percent deposit bonuses.
Investing is way better, but I think people are scared because of scam investment sites everywhere and the worse of all is most times you can hardly tell the difference. So while I would support investing your money, do so carefully and wisely so you wouldn't lose all your funds.
I couldn't agree more, if you don't invest you are allowing another person invest with your money without any ROI for you. Investment allows you to grow your wealth and at the same time generate inflation-beating returns. You also benefit from the power of compounding.
