Savings or Investment? My personal perspective

With everything we are seeing that is happening with the US banking system this week, it is fair to ask ourselves if it is better to save or invest... And I will always say that it is better to invest.

Investing is always better than saving

From my perspective it is so, and beware, I am not saying this because many North American banking institutions are closing at this time and are irrefutable proof of this; but because I have always considered that it is better to invest our money on our own.

Because the truth is that there is nothing that the banks can do with our money, that we cannot do for ourselves and much better in every way. Because leaving aside the fact that banking institutions are at risk of bankruptcy for X or Y reasons, beyond that, there is the fact that the interest rates that banks offer their savers monthly are nothing short of ridiculous.

And it's understandable that interest rates are so low throughout the banking system; but what is not so understandable is that we paralyze our money in a financial institution for a return or pyrrhic gain, while inflation eats away at our purchasing power. There if the accounts do not add up...

Image Source

So, that is why I think that it is always better to invest, but of course, if we know exactly what we are doing with our money or capital; Otherwise, we'd better steer clear of investing as well until we prepare ourselves or seek competent financial advice.

What can we invest in?

I'm not a financial advisor, so don't take what I'm going to say as investment advice, but in my opinion, there are many alternatives to invest today in a proper way. Everything will depend on the size of the monetary capital that we have available, and the risk that we are willing to assume when investing, but basically, some of the things in which we can invest are: real estate, stocks, currencies, cryptocurrencies, commodities, goods and services various etc

As I already said, everything will depend on the size of our capital and our risk aversion. But there are many investment options, and I can assure you that being careful when choosing them (that is, if we know how to choose them properly), each and every one of them is much more profitable than having money paralyzed in the banks.

And I clarify that I am not against banks, because they have their general utility, but what I am completely against is having our money devalued, with so many possibilities to multiply and increase it, if we act intelligently and diligently timely.

At first, saving money is positive if we want to build a base to invest, because based on an amount of money saved, we can request funds as leverage to be able to make our investments and grow faster in every way. But be careful with the leverage as well; because you have to be very careful about it.

Because leveraging is fine if you know what you are doing and you are absolutely certain about what you are investing in, but if this is not the case, perhaps the best thing to do is to invest only with your own capital; however small it may be.

The center point

Whether you focus on saving or investing, the central point here, beyond personal preferences, is that you know very well the pros and cons of both. Because all this has two sides, just like a coin. So the most important thing is that when choosing, be aware of what you are doing so that you can take responsibility for your own money and learn in the process.

Personally, I think that one of the best things about investing is that you learn to manage your own money and multiply it in unimaginable ways; and this allows us to understand that we do not need banks, or investors of any kind, who come to do with our money what we can do in a more responsible, reliable and safe way.

It is a matter of vision, and a matter of understanding that if we are going to choose to be investors, we must constantly study and prepare ourselves to be better, more efficient, proactive and capable every day, because only in this way will we achieve the desired financial success.

What do you think about the topic discussed? Please comment.

_{Gif created by @piensocrates}