Saturday, June 26, 2010

Why We Better Save Money And Why We Invest MOney

Few days back i just earned 200$ from affiliate marketing. I thought i should save 100$ for future and should spend rest of money for my necessities. One of my friend was with me at that time, he just asked why are you saving money? What you have to do? I just replied him i am saving money so that after sometime i would have a good amount of money and then i can buy a good car also i can pay my university fee from that saving of money. My friend asked what is your university fee right now?  I told him; he said that this university fee will be increase by the end of you semester due to Inflation and other factors, but you are saving money according to today university fee, so you should better invest your money somewhere so that by the end of your semester you will get exactly that amount which is equal to you future university fee. That was a simple formula and i got that, so i decided to invest my all savings somewhere.
We people use to save money in our daily lives without understand that if we keep our money in the idle form that would not be beneficial for us in the future. Because as we all know that value of money is increasing as time pass. We are not discussing the factors behind the increment of value of money, but we are trying to tackle that increasing value of money. I think we should better put our savings in a saving account instead of putting our savings in the current account, because in the saving accounts of bank, you will get some extra benefit on your savings and that will be off course same as you saving for any future purpose.