Your new year resolution has been to save more money; you are trying to spend less and salt away some money on a regular basis. You are hoping that this will help you get the the international holiday, down payment for a new house, kids education or fund your golden years. This all seems good right?
Wrong!!! This sounds ridiculous right…how can Saving money be wrong!!! I hope that by the time you finish reading the next couple of paragraphs you will understand what I mean.
Just saving money and putting it away without thinking where you are putting it is wrong. You should think about Investing; some people think it is the same as Saving. But trust me it is not.
When you think about the word Investing – you have to start thinking about Inflation, Returns, Risk, Taxes, Liquidity, Brokerage etc. You have to Save and Invest carefully and with due consideration to achieve your goals of international holiday, down payment for a new house, kids education or funding your golden years.
If you have followed the first blog on “Lazy Money” you would have seen that the money that you Save must be Invested to meet or beat inflation.
All this may sound complicated but it is not and the market is full of simple Investment products that you can use to achieve your various goals. You just need to be clear on your goals.
So stop just Saving and start Investing.