Earnings, Saving and Investment. Which is the most important?

We do not live in a world where we let nature take its course every day. It is needless to say that money is the utmost importance. Money is something that can be exchanged and something important for survival (HDFC Life 2018).

It is important to understand how income, savings and investment are crucial at different stages of life.

Money is not everything, but it is necessity. Beyond the daily needs, earning money helps to enhance lifestyle and support the things we care most about such as family, health care and entertainment (Weiner 2016). It also helps to obtain life’s intangible like independents and freedom, opportunity to develop dreams and talents (Ganeshan 2010). By earning money, people especially fresh graduate have the ability to choose their own life path and have savings and investment capacity. With money, much good things can be done and plenty of unnecessary being avoided and eliminated.

Young who just started working recently and have a lot expenses such as loan and rental, it is all easy to place saving at the bottom of priority list (Wright n.d.). Usually, young enjoys the rest of the money every month without worrying about tomorrow. But is these behaviours correct? Although it is important to make full use of the present, there are some reasons why savings is crucial for everyone: 1) Saving money can allow everyone stay peace of mind (Ahuja n.d.). When financial secure, people can sleep better because they know that they can afford new cars/houses, medical expenses, and are ready to overcome any uncertainty. Thus, saving is essential to improve the quality and reduce stress. 2) Savings can help in unexpected situations like accident and loss job (Ahuja n.d.). Emergencies are surprising and require additional funds is notified in a short time. Therefore, saving can as the funds without to massive debt. 3) People start saving habit early can go into retirement early (Ahuja n.d.). The status of pension may not be enough to meet all their needs- hence, saving should be made early, which suggests starting at work so as to live happily and stress-free during retirement.

"If you don't find a way to make money while you sleep, you will work until you die." – Warren Buffett. Investment is importance which to make your money work for you. Investing in bonds, stocks or real estate will bring about growth in wealth or extra income, but sometimes both. If not investing, or not doing well means a longer working life (Dividend Earner 2021). The return on investment can provide financial stability in future when investment is taken seriously. Therefore, to have more money, investment is essential.

In concluding, earning, savings and investment are arranged in sequence. But saving is the hardest thing to do. Because most young people enjoy life in present without worrying about tomorrow. Everything including investment and retirement needs funds. If there is no saving, where is the money? Therefore, wealth accumulate with time, and there is no shortcut.

Reference List

Ahuja, Ravi. n.d. “The Importance of Saving Money in Future.” Money Glare. https://www.moneyglare.com/the-importance-of-saving-money/

Dividend Earner. 2021. “Top 5 Reasons Why Investing is Important.? Dividend Earner. https://dividendearner.com/why-investing-is-important/

Ganeshan, N. 2010. “Money is Important, But How Much Do You Need?” The Hindu. https://www.thehindu.com/opinion/open-page/Money-is-important-but-how-much-do-you-need/article16837896.ece

HDFC Life. 2018. “Important of Saving and Investment.” HDFC Life. https://www.hdfclife.com/insurance-knowledge-centre/investment-for-future-planning/importance-of-savings-and-investments

Weiner, Gary. 2016. “The Real Reason Money is So Important.” Super Saving Tips. https://supersavingtips.com/why-is-money-important/

Wright, Melanie. n.d. “5 Benefits of Saving Money.” https://uk.virginmoney.com/virgin/living/article/5-benefits-of-saving-money/