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Why Saving And Investing is not Enough
Saving and investing are two very positive habits. If you practice them, you probably won’t have money problems in your life. You will develop what we can call Financial Peace of Mind (TF). However, if you are more ambitious, saving and investing is not enough.
If you are reading this article, you are probably interested in personal finance. So I’m assuming you’re already doing a lot of positive things. However, if you have specific goals, you must make a plan to achieve them.
What you will get by saving and investing
When you start to be interested in personal finances, the first thing you do is analyze your expenses that is when you realize that you are probably spending more than necessary. So, the next step is to reduce expenses, make a budget and analyze how much money you are going to earn and spend each month.
The difference is what you start saving. And once we realize the benefits of saving, we stop thinking that savings are what is left after expenses. We begin to see that savings can be the priority, and expenses can be planned based on the money we want to save. It is the principle of paying yourself first. You save before you spend. And you start to increase your financial peace of mind (TF).
When you see that savings start to accumulate, you realize that you can start investing.
Accumulating money in the bank does not give any kind of return. So, you do some research, decide where to put the money (if you have no idea, in this article I explain how to build an all-terrain wallet) and you do it. In the medium and long term, your investments are probably going to do better.
All this will allow you not to have money problems, achieving financial tranquility (TF). Let’s see why:
- You pay yourself first: you save money every month
- You plan expenses with which there are few unnecessary expenses
- By avoiding unnecessary expenses, you avoid consumer credit
