Never Save, Invest Instead

byJbaptist

230 followers

Updated 4 years ago

What the hell is this? I will never read the article that is telling me to stop saving because I do not know how I can survive if I do not save.

I think you can support me if I think this way; many can support my idea because saving can save your ass in the future. Referring to the education I got from school, I would like these teachers who encouraged me to save.

But why can’t I look it differently? What sounds correct is not always correct. There is always another angle / perspective of seeing things. I am going to compare savings and investing but in my own way of seeing things.

Investing - Give away what you have to get it back multiplied.

A farmer is a good example to consider. When it is time to farm, a farmer will take seeds and bury them. Logically this looks like a stupid idea for someone who has no information about farming. Someone else may not understand why a hungry farmer is burying seeds of beans that can save him today. However, a farmer can prefer to suffer few months to get better after a period.

Here is a typical example that will help you understand why it is worthy burying one seed of bean. Once one seed is buried, it germinates and as it grows, a farmer starts eating some of its leaves and then green beans come and they eat some of them, then the rest became fruits (pod) and they eat them frech and even dry. I did not make a deep research on how many pods a bean plantation can produce, but I was born in the village. I used to see beans in the field and I myself used to sow beans when I was there.

Depending on the fertility of the soil, beans pods (fruit) can vary from one pod to 20 or more and each pod may contain 1 to 8 seeds or more. Let us make a little calculation. Let us take a bean plantation with eight pods and each pod contains eight seeds and we have 56 seeds from only one seed sowed. All this is estimations but close to reality. Regardless the leaves and green beans eaten, now come 56 beans more only from one seed sowed. What if you sow ten thousand of beans seed? You will harvest more, right? This is how investment works.

Savings - Keep what you have to lose them all

Let us see another farmer who saves his one bean seed in the house. Let us assume that he saved this seed in a very secure place. The seed will be really secured but will be old and will stay a lone, no multiplication at all. What if the place is not safe then? Of course, pantry pests, locusts, louse or any other insect can eat that seed and now it becomes useless and disappears. This farmer will lose what he saved and suffer more.

Investing vs saving in terms of money

Regardless the way you memorized the definition of these terms in schools or the way dictionaries define them, for me, investing is buying assets not liability, to generate regular income.

• Assets is what brings money in your pockets.
• Liability is what takes your money from your pockets.

Saving is keeping your money either in banks or in your safe - deposit box for future use.

The best saving is investing

It sounds strange, right? However, it is correct. I want to show you another angle. Someone who saves, wants to keep it for a long time for future use. The only problem is that there will be no multiplication or pantry pests and locusts will eat it.

The investor expects the same - Just to keep it for future use but he loses it first, in return, there will be more than what the saver expects. If you want to save, invest. That is when you will save more. In addition to that, invest in yourself, which is to educate/learn new skills every day, is the best investment you will ever make.

Do you agree with me that the best saving is investing or you have your own understanding on this? Share with us or ask if you have any question, in the comment.