{"id":4314,"date":"2018-08-01T01:45:26","date_gmt":"2018-08-01T08:45:26","guid":{"rendered":"https:\/\/financer.com\/?page_id=4314"},"modified":"2024-08-22T09:20:53","modified_gmt":"2024-08-22T16:20:53","slug":"save","status":"publish","type":"page","link":"https:\/\/financer.com\/save\/","title":{"rendered":"Save"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"The_Benefits_of_Saving_and_Investing_Your_Money\"><strong><span data-preserver-spaces=\"true\">The Benefits of Saving and Investing Your Money<\/span><\/strong><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">When it comes to building a safe and secure financial future, there are two things everyone needs to do: <strong>save their money<\/strong> and <strong>invest their money<\/strong>. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The two strategies go hand-in-hand. More often than not, individuals\u2019 savings and investments are one and the same.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So let\u2019s look at the differences between <strong>saving<\/strong> and <strong>investing<\/strong>, why you should be aware of them, and how to use them to your <strong>advantage<\/strong>.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Saving_Your_Money\"><strong><span data-preserver-spaces=\"true\">Saving Your Money<\/span><\/strong><\/h2>\n\n\n\n<ul class=\"is-style-pros-list\">\n<li>Ensures a financially stable future<\/li>\n\n\n\n<li>Enables you to take opportunities<\/li>\n\n\n\n<li>Help reduce stress from financial pressure<\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Saving money is the number one suggested way to make yourself financially secure. The question of why you should save money is something everyone should answer when\u00a0<\/span><strong><span data-preserver-spaces=\"true\">budgeting<\/span><\/strong><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">People often take saving money for granted, but it is important to look at the reasons for saving.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Emergency_Expenses__Unexpected_Needs_For_Money\"><strong><span data-preserver-spaces=\"true\">Emergency Expenses \u2013 Unexpected Needs For Money<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Perhaps the foremost reason to save is to have an emergency fund.\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">No one knows what the future holds. People can experience<strong> job loss<\/strong>, <strong>emergency denta<\/strong>l or <strong>medical expenses<\/strong>, unexpected <strong>car repairs<\/strong>, and many other situations that they have not budgeted for. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Any one of these can have a devastating effect on a person\u2019s finances.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Having personal savings such as an <a href=\"https:\/\/financer.com\/wiki\/emergency-fund\/\" data-type=\"wiki\" data-id=\"11681\">emergency fund<\/a> available can mean that when an unforeseen financial expense or situation arises, money is available to help get through the tight spot. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This can be the difference between being able to stay afloat financially and going into debt.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Saved money and proper\u00a0insurance\u00a0are essential for preparing yourself for the unexpected and can keep you from losing your possessions and financial independence.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Personal_Saving_For_Large_Purchases\">Personal Saving For <strong><span data-preserver-spaces=\"true\">Large Purchases<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">A second reason for saving money is for future use on <strong>large expenses<\/strong>. Very few people have the option of\u00a0<\/span><strong><span data-preserver-spaces=\"true\">buying a car<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0or\u00a0<\/span><strong><span data-preserver-spaces=\"true\">house<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0with just their earnings.\u00a0<\/span><\/p>\n\n\n\n<p>Find out how long it takes to buy a house here.<\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Most large purchases require a substantial deposit, so money needs to be saved for this. It is a good discipline to work towards a goal and establishes the sound habit of saving money for future purposes.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Savings_Help_Cover_Variable_Expenses\">Savings Help Cover <span data-preserver-spaces=\"true\"><b>Variable Expenses<\/b><\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Besides fixed expenses that are easier to budget for, there are variable expenses that a person should save for. These are often of an unknown amount and are can be quite substantial.\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">These expenses include gifts, birthdays, Christmas, or other festive celebrations, and holidays.\u00a0\u00a0<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Personal_Savings_Brings_Peace_of_Mind\">Personal Savings Brings <strong><span data-preserver-spaces=\"true\">Peace of Mind<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">When a person knows they have savings to enable them to withstand the occasional <strong>unexpected expense<\/strong>, and that they are progressing in saving money to be able to buy big items, they can experience peace of mind. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">They also have the emotional reward of knowing that their foresight and self-discipline have put their personal finances in a healthy state.<\/span> <\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Everyone likes knowing they are secure, so with some money saved away, you don\u2019t have to constantly worry about any of the reasons above.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How_To_Save_Money\"><span data-preserver-spaces=\"true\">How To Save<\/span> Money<\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">So now that the reasons for saving money have been established, the question of how to save money arises. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Fortunately, there are some simple and straightforward suggestions that most people can follow to enable them to save money.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The most frequently suggested rule is called the \u201c<strong>20\/30\/50 rule<\/strong>\u201d, with <strong>20% <\/strong>of income going towards savings and debt, <strong>30% <\/strong>of income used to pay for your living expenses, and <strong>50%<\/strong> for all other expenses.<\/span> <\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While all of the ratios are important for a balanced budget, we are going to focus on the 20% aspect of the rule. This rule is very useful for those who are first setting up a budget or learning how to handle their money.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Saving money can be complicated for anyone, and individual circumstances vary greatly. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Taking that into account, it is highly beneficial to save 20% of your income every month if you are able to. This will allow for consistency and a standardized budget.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Although 20% of income savings is the recommended standard, it is not always possible for everyone. In those cases, try to use\u00a0<\/span><strong><span data-preserver-spaces=\"true\">smaller ways<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0that can add up on savings.<\/span> <\/p>\n\n\n\n<p>You may have to get creative when finances are tight to save money but it is possible. <\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are two ways to do this. The first is to save whatever small amounts one can. This could include putting extra change into a jar every day after getting home. <\/span><\/p>\n\n\n\n<ul class=\"is-style-default\">\n<li><a href=\"https:\/\/financer.com\/loans\/articles\/need-money-now\/\">12 fast ways to get money now<\/a><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">The other way is to decrease expenses. This could include for example spending less on eating out and on entertainment. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Making simple changes like not buying coffee every day or taking lunch from home instead of buying it, can leave more money to save.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\"><strong>Let\u2019s look at investing money next.<\/strong><\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Investing_Money\"><strong><span data-preserver-spaces=\"true\">Investing Money<\/span><\/strong><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">While saving your money is certainly a safe money move, it is not the best way to grow your money. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With extremely low-interest rates and an economy that seems to be growing, the best option for anyone looking for financial growth is\u00a0<\/span><strong><span data-preserver-spaces=\"true\">investing money<\/span><\/strong><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investing money is a broad term that can apply to a wide range of investment sectors. <\/span><\/p>\n\n\n\n<p>Investments can range from stocks and bonds<span data-preserver-spaces=\"true\"> to real estate, to commodities and various other asset groups.\u00a0\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"So_why_should_you_invest_money\"><strong><span data-preserver-spaces=\"true\">So why should you invest money?<\/span><\/strong><\/h2>\n\n\n\n<ul class=\"is-style-pros-list\">\n<li>Investing wisely increases your monetary growth more than interest in a savings account<\/li>\n\n\n\n<li>Creates security for your retirement<\/li>\n\n\n\n<li>Improves your financial literacy<\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\"><strong>Here are a few key reasons why investing money is a sound personal finance option.\u00a0<\/strong><\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Monetary_Growth\"><strong><span data-preserver-spaces=\"true\">Monetary Growth<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">As stated before, interest rates are currently very low. Some of the highest savings accounts are below 2%. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Therefore, if you don\u2019t want your money to slowly be eroded away by inflation, you need to invest.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">By investing your money wisely, you can beat inflation and make significant gains in the capital value of your investment. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Besides this, you may also gain a rate of return above the current bank deposit interest rates. <\/span><\/p>\n\n\n\n<p>While the <strong>rate of return<\/strong> from investing can be variable and subject to market fluctuations, the rate of return from investing is generally better than saving, especially over the long term. <\/p>\n\n\n\n<p>Investments are a longer-term<span data-preserver-spaces=\"true\"> and generally more profitable use of your money than are savings.\u00a0<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Retirement\"><strong><span data-preserver-spaces=\"true\">Retirement<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">With Social Security slowly dying and pension plans virtually nonexistent, investing is the best way to go for those looking to have a\u00a0<\/span><strong><span data-preserver-spaces=\"true\">good retirement<\/span><\/strong><span data-preserver-spaces=\"true\">. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With options such as\u00a0<\/span><strong><span data-preserver-spaces=\"true\">401(k)<\/span><\/strong><span data-preserver-spaces=\"true\">, those investing money into their retirement can benefit immensely.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Not only is it commonplace for an <strong>employer to match retirement contributions <\/strong>up to a certain point, but income put towards 401(k) can be pre-tax income. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This is a win-win for anyone looking for a comfy retirement future.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Learn_More_About_the_Economy\"><strong><span data-preserver-spaces=\"true\">Learn More About the Economy<\/span><\/strong><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Turning on the news and hearing all the jargon related to the economy and investing can seem intimidating. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This is where investing isn\u2019t just beneficial to your money, but to your knowledge as well.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As you continue to invest and research where you want your money to go, your knowledge of how the market works will increase. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This is a great plus to anyone who wants to know more about how the economy is working and our country\u2019s financial status.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Should_You_Save_or_Invest\"><strong><span data-preserver-spaces=\"true\">Should You Save or Invest?<\/span><\/strong><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Both. You should start saving for the reasons mentioned above. Once you have secured those areas, it is a good idea to start investing for long-term gain.\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Saving your money and investing your money are the keys to successful personal finances. <\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Learning how to wisely manage your money in those two areas will greatly improve your monetary wellbeing and future financial situation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Benefits of Saving and Investing Your Money When it comes to building a safe and secure financial future, there\u2026 <\/p>\n","protected":false},"author":37432,"featured_media":14363,"parent":0,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"disable_branded_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ep_exclude_from_search":false},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages\/4314"}],"collection":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/users\/37432"}],"replies":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/comments?post=4314"}],"version-history":[{"count":50,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages\/4314\/revisions"}],"predecessor-version":[{"id":81468,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/pages\/4314\/revisions\/81468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media\/14363"}],"wp:attachment":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media?parent=4314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/categories?post=4314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/tags?post=4314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}