MONEY: Should we save or Invest?
2017-12-19 09:43:46.001765
What I have noticed lately is that many students enjoy spending their money on a new smartphone, expensive motorbike, fancy coffee drinks, or things that are quickly used up and have little long-term value.
When I think about this I must ask myself, is this the right thing to do with my own money?
What about saving money and investing it into something that will grow in value over time?
I’m a high school student in the 12th grade and consider myself a freelance programmer and aspiring entrepreneur.
Until recently, when I did earn extra money, and after paying for my necessary expenses, I would never save anything.
I buy things that I really didn't need. and there was always a problem with not enough money.
When I would run out of money and never have enough, I would wonder where did all my money go.
I thought that if I saved 10 dollars, then next year it will still only be 10 dollars, so why not just spend it now?
Then I began to read and learn more about how money works and how to make it work for me.
Now I wonder how can I turn my money into assets that will increase in value over time?
I read books and listen to podcasts related to the history of money, and how to better manage and invest money for the future.
One thing I noticed with my generation is that most of the time when we have a little extra money, we go out and spend it instead of saving and learning about investing.
Today most people are caught in what we call the "rat race".
This means that we basically work forever like a slave for too little money in a job that we don't really like always hoping for a better life.
We never seem to have enough money in our pocket to do anything really big.
For my own future, I am determined not to be caught up in a rat race with everyone else.
Now I have decided on a program where I will invest the majority of my earned income only on things that are sure to increase in value over time.
When you keep money in the bank or even at home in your own wallet, your dollars will remain the same value and never be worth more.
In addition, the price of everything seems to go up every year, so then the value of money really goes down in value every year.
It seems to me like it's a good idea to have my money working for me and increasing in value even when I am sleeping.
My advice to high school students who have a job and want to save for university is that they should learn about how to invest their money for the long term.
If you start now to learn how to save and invest your money safely and wisely, as time goes by your money will increase in value.
Then you will be better able to support yourself through university.
But with all investing there are risks.
This means that if you make wrong or bad decisions you can lose some or all of your money.
The key to success is to always read, research and study long and hard before you invest in anything.
In addition, always ask for a second opinion from a trusted mentor who can help you along the way.
No one wants to lose your money and then have nothing to show for it.
Eric Thakvika
Dec 19 2017, Phnom Penh, Cambodia