Why is it important for me to save and invest?

It is then important to understand how the two are connected when it comes to growing your wealth.

To save, or not to save…

Saving money is essential to prepare for the future ahead. It gives you purchasing power to plan ahead and ensure you have the financial capability to pursue your dreams. Without savings, how would one be able to make purchases, achieve life goals such as marriage, building a family, pursue higher education, or whether any financial storms?

Why invest?

Investment comes into the picture due to several factors, most crucially inflation. Over time, the value of your money erodes due to rising cost, and this is known as inflation. The money you have now will be worth less in the future, and investment is a way to ensure you always have enough to sustain your lifestyle and have the same or more purchasing power in the future.

Now that the importance of saving and investing has been stated, here are some best practices on attempting to save and invest: 

• The age-old tip on how to save money is to have the discipline of setting aside money for savings first, before spending.
• Have a savings plan consisting of a breakdown of your savings, spending and future plans in order to have a well-planned strategy of growing your wealth.
• Although inflation erodes the purchasing power of your money over time, you can take steps to protect your wealth by shifting a portion of your money from bank deposits to other forms of investment. This can be done by educating oneself with financial investment knowledge through various avenues available. It is by gaining knowledge of financial management, that will enable you to make better decisions on your financial growth.
• Medical inflation occurs due to the rapid rise in cost of getting treatment at hospitals and clinics. For this, a medical insurance is an option worth considering as it is a plan that covers for a wide variety of illnesses and conditions which will provide financial protection when medical emergency strikes.

Saving and investing is definitely an important financial habit to have, and it takes realisation of it, discipline and hard work to work towards growing one’s pool of wealth to achieve life goals.