How To Start Saving Money And Invest Wisely

9/16/2020

Don't just save your money, learn to invest. Savings and Investing are two different things. This is how you know the difference

On Savings

It's not about how much money you make. It's how you save it. Form the habit of saving by repeatedly doing it until it becomes second nature.

Regardless of your age, if you are planning to retire at any time, it is important to save today, save consistently, and save wisely.

Pay yourself first! The concept is simple:

Every payday, the very first thing you do is set aside
a percentage of your income in a savings account.

Pay Yourself Formulas

Income - Savings = Expenses
Income - Savings & Investments = Expenses
Income - Savings & Tithes = Expenses
Income - Savings & Tithes & Investments = Expenses

On Investing

Are you investing wisely?

Warren Buffett said, "Someone's sitting in the shade today because someone planted a tree a long time ago."

First, never get into something you don't understand. Is there a friend inviting you into a business you know nothing about? Think twice and thrice and four times before jumping in. I'm saying this because I've seen many that have lost their whole life savings and retirement fund. After all, they got into things they didn't understand.

Second, never put your life savings into high-risk investments. If you have negligible funds that you're prepared to lose, then go ahead. Practice due diligence. Due diligence simply means doing your homework and finding out which statements are opinions and which are facts. Beware: Too much due diligence is also called "Analysis Paralysis."

Third, seek and choose your mentors wisely. If you seek wise counsel, you multiply your chances for sound decisions.

The Bible says in Proverbs 15:22, "Plans fail for lack of counsel, but with many advisers, they succeed."

Conclusion

Small sacrifices go along the way! All the hard work. All sacrifices. All the sleepless nights, struggles, downfalls, it all pays off.

Cheering on you! Stay safe and healthy! God bless!

To a better you!

2 Comments

Jen

9/23/2022 04:53:19 am

Hello, what are the best investments for first-time investors? Could you suggest? Thank you!

Ralph link

9/23/2022 05:27:36 am

Question: What are your financial goals?

You must first decide what your financial goals are. What do you want to accomplish, and in what period? What's your risk tolerance, the amount of risk that you're comfortable with? Without a clear understanding of your desires, your needs, and your potential concerns, what to invest in is not clear.

But for first-time investors, here are some investment vehicles that you may consider, especially if you have no experience or knowledge in investing. Mutual Funds, Unit Investment Trust Funds, and Exchange-Traded Funds (which pool the money of many investors to purchase various securities) are a good start for first-time investors. Ideally, first-timers should also invest in a mix of stocks and bonds.

Always do your research on performance and fees from a trusted website or financial advisor before investing.