What is Your Plan to Earn Money? By Saving or Investing?

Are You Preparing for Retirement?

How are you planning to save up money for your future? Are you planning to save more money every month till retirement? Or do you plan to use a little money every month in small investments? Are you a saver or an investor? If you want to make money, you need to have a plan. What do you want in life? What are your goals? Are you thinking about your future? Do you plan on having a retirement or giving your children money for school? You need a plan on how to make more money if you want to accomplish anything in your life. After all, which sounds more appealing to you, working hard for forty years, having all your hard earned money taxed to death, and then you retiring at a ripe old age, or would you prefer to work hard for ten years, and retire early and rich? Depending on which financial strategy you use, it may take you a really long time till you can reach retirement.

Life is not the same as it used to be fifty years ago. In the old days, you would work for a company and they would provide for your retirement. Not so in the baby boomer generation. Now more and more people are being layed off. More and more people are losing their retirement benefits and social security is shrinking. The few people that do have a retirement savings account, their money isn’t able to go as far as it used to. Company policies concerning retirement shrink every year. I hope that you can survive on a tiny amount of money because that is all you will get after taxes and inflation. Don’t think you can get another job at your old age to help earn money because if you do, the government will cut your benefits.

Creating a financial plan:

If you want to survive in the future, you have to create a financial plan. How do you plan to earn money? Depending on what you do, you have to decide if you want to make money investing or by trying to save it. Only a small amount of people today even have savings, most people are surviving paycheck to paycheck. For the small portion that has savings, how would you like to know that all your savings may be worth way less in the future? Savings is becoming a less and less effective financial plan. 401(k)s and IRAs are not worth it as much as they used to be. It is becoming increasingly worthwhile to learn how to invest and put your money into good use instead of putting it into a bank.

There are several reasons why investing is a better plan then saving. It’s a better way to earn money fast. It is easier to make money investing then by using savings because you put your money to work for you. Whereas your investments could give you a massive return, savings interest only increases a little bit, and the amount of interest given per year is shrinking. Before they used to have 5% interest bank accounts but now the banks are giving an average of .5%. Thats 10% of what interest used to be, so putting it in the bank is not a good investment anymore.

Putting money into your 401k and IRA is not very helpful either as you cannot access it in an emergency. In order for it to grow substantially, it has to sit in your account for 40 years. What’s the point of all that money if you can’t use it till you’re too old to live anymore? Not to mention that once the baby boomer generation hits retirement age, all the money in the 401(k)s coming out at once is going to either bankrupt the government or cause massive inflation (if they produce money to battle the problem.)

Investing in the stock market:

Most of the time when people think of investing, they think of the stock market. That is not the kind of investing I am referring to. The kind of investing I’m talking about involves buying real estate and creating businesses. As the value of money goes down, the value of real estate goes up. And since real estate is land, it will always be needed. If you know what you’re doing, it’s easy to make money in real estate. The same goes for businesses. If you can create jobs and provide services to people, then you will always be helpful to the economy, which in turn helps everyone. There are also numerous tax breaks for business owners since the government likes people who give other people jobs.

Becoming Free:

Discovering and reading the contents of this website is only one small part of being able to become smarter about your finances. If you’re really willing, you will have to learn that if you want to make money fast, there are a few things you should know. Although there are a few methods you could use to make quick money, they don’t last forever. Depending on “get rich quick” schemes only leads to trouble. So before too much time passes and your financial problems become worse, create a plan for your future.

Posted in Financial Planning