Saving and Investing?

As far as everyone knows, the earlier we put aside the money for your savings, the bigger the amount would get at a point of time. From when we were still in elementary school or kindergarten, our parents normally would get us a piggy bank to keep our extra coins. When we were little kids, we seemed to understand the theory of putting aside the extra coins to buy our favourite toys but after we grew up, we tend to forget this simple rule.

Today many Malaysians spending tomorrow’s money for today’s needs. Some don’t just earn pennies. Some salary can easily pay for a condo instalment every month but still it’s never enough. All the pleasurable feelings of satisfying their needs blinded them up from the simple old rule. However, some does save in the bank accounts, but, can bank accounts take our money to greater heights?

Now the old rule of putting aside money in the piggy bank just won’t work as effective. Remember inflation? It is our main enemy in putting aside your money in the piggy bank. According to financial experts, inflation rate is easily 6% in the urban area like Kuala Lumpur. Can interests in our savings account (piggy bank) beat 6%? Hardly I would say, if not never.
The keyword here is investment. Only investment can beat the value of the inflation. To make the money works harder than us, invest them. Investment comes with risk but see long term. Future value will always better than current value. Market fluctations are a norm and if we can hold on longer to our investment, we gain. I read from an article that the worst enemy for an investor is the investor oneself. When we invest, we should look forward for a longer time horizon for returns. Sometimes the investor may get panic over a bearish market and decided to sell off the investments. Recessions happen but they always recover. Just be patient.