Saving money, or the saving habit as put it so many years ago, is the foundation of all financial success, including investing.
Having money saved is what provides the means for you to take advantage of the situations, whether it's going back to college, starting a new business or buying shares of stock when the market crashes.
These savings money resources will provide a foundation and answer questions such as, "How much money should I be saving?" And "What is the difference between saving and investing?" You will also learn the best places to save things like down payment money on a house.
SAVING VERSUS INVESTING
Did you know there is huge difference between saving and investment? Unless you were fortunate enough to be the child of wealthy banker or investor, it's unlikely anyone ever taught you this. Both saving money and investing money have their place in your life, but they have very different roles.
How you handle them can have being implications for your financial success, stress level, and how wealthy you ultimately become. It can even mean the difference between suffering through a recession or depression with white-knuckles or sleeping soundly through the night knowing you have enough space liquidity on hand.
Even if you are committed to saving mone, you may find yourself falling into the trap of spending an extra R5 here or R20 there, thinking, "it's not that much I will never miss it. Depending on your age, this could be a huge mistake.
One of the cornerstone of saving money is understanding the time value of money,that is the concept that R1 today is more valuable than R1 a year. Save today for tomorrow may not be the same.
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