Posted on Saving
/ 03 Sep 2018 / No comments
When many people discuss their plans to invest, one of the most common things mentioned is returns and how they’re keen to get the most return for their money through such investments.
Listen to anyone talk about their stock portfolio with passion, and you’ll hear them speak about percentage returns which they inevitably hope to increase each time to get that higher of returns every time.
Though there is absolutely nothing wrong with this steely determination and undeniable passion, what is often lost in such a discussion is one of the other most powerful of ways to build steady wealth – that is putting much money into a savings account and saving as much as you can instead!
Saving Reassures More People Than What Investing Does
It’s no secret that many people are put off by investing because they are entirely unconfident with the notion and element of risk involved when you place your money into an unknown strategy. Saving allows you to take away that risk and encourage you to build up your money with renewed confidence.
Saving Offsets Lackluster Returns
If you can save as much money as you possibly can, you don’t have to worry about aiming for those most optimal of returns as you would on those investments. Sometimes, many savers will tell you that a boost in their savings account can often yield more power than a higher rate of return does!
Saving Allows You to Match More Funds
For those savers that have a 401(k) plan with their employer, there is a chance here for them to receive matching contributions from the company they work for. Many companies have a plan in place which sees them match all their employees’ contributions by up to as much as five percent of their salary. Some lucky employees receive even more!