save and invest These are two very necessary habits to achieve true financial freedom and greater economic stability in the future.
And in order to start building these new habits, it is necessary to start by understanding the difference between the two concepts and how they could help us in the future.
Are saving and investing the same thing?
La Royal Spanish Academy (RAE), refers to the word save as: "reserving a part of ordinary income" and "saving money as a forecast for future needs". For his part, he speaks of investing as “employing, spending, placing a flow”.
In other words, to achieve both, it is important to manage our income responsibly. And even, it is normal that to get to invest you need to save first.
And to save, it is important to create and respect a budget, avoid ant expenses and opt for an institution, such as Coopealianza, that really supports your money.
Saving involves putting money away and letting it accumulate for use at some point in the future. We have even already talked in this blog about the importance of having at least one savings account for major emergencies (the famous emergency fund).
Meanwhile, investing is placing money in financial instruments that allow us to receive benefits in the short, medium or long term.
Of course, when investing we expose our money to a certain level of risk, which could give us profits, but also losses. Hence, it is essential to have specialized advice because the greater the risk, the greater the potential return, but it is not always easy to take risks.
You can also invest
It is wrong to believe that only people with high incomes or financial professionals can invest.
Currently, there are options in the financial and stock market with which you could invest small amounts of money; This makes the wonderful habit of investing more accessible to people who live on a salary or have their own business.
Finally, it is important to understand that some “expenses” are also investments because they will allow us to obtain profits in the future, such as when we invest in a Master's degree that will guarantee us a better salary and good job opportunities. Or when we invest in founding a company that gives us profits greater than a normal salary.
If you are determined to save and invest, Contact us.
At Coopealianza we offer you financial advice and different opportunities to grow your wealth.