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RE: SAVING OR INVESTING!!! WHICH ONE IS BETTER?

in #life7 years ago

What do you think about having 3 funds:

1- Emergency fund: Have 6 months of personal expenses saved (for emergencies only)

2- Dream fund: Have 1-3% of your income to have fun (buy what you want, vacations etc)

3- Investing fund: Invest a large and consistent % of your monthly income. (start with at least 10% to get cash flow, and reinvest your profits)

Note: If you have debts (know the difference between good and bad debt) forget about fund #2 until you pay off your bad debts

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@lulita, I think this is a great idea. Thanks for sharing it here.

Some governments introduced already negative interest rate on bank savings. So "saving" as a wealth long term strategy is the worst thing to do.

Absolutely in the case in my country. Thanks for this nice contribution @lulita.

My pleasure. Feel free to connect with me @lulita and leave some feedback on my posts...I'm always learning from others 😀