Comments on: Saving Money IS Investing – So Act Like An Investor

By: Rebecca

Rebecca — Thu, 01 Jan 1970 00:00:00 +0000

I completely agree about savings really meaning investing

You SAVE to INVEST in a brighter, more stable future!

however, sometimes I feel the line of “investing” and “saving” overlap and create gray areas.

Instead of using “high interest rate” methods, it is hard to NOT take the 10% AVERAGE RATE of the stock market by using an indexed fund to the S&P 5000, DOW, etc.

Based on risk levels and knowledge, these small risks may not be taken when the rewards are so much greater!

THANK YOU for blogging and sharing information and knowledge!

By: RC@ThinkYourWayToWealth

RC@ThinkYourWayToWealth — Thu, 01 Jan 1970 00:00:00 +0000

Good points-it can definitely be considered investing. With today’s inflation, if you have your money in a traditional bank you will lose money. So by “investing” in a high yield account, at least you are keeping that portion of your money closer to even than losing purchasing power.

By: PT

PT — Thu, 01 Jan 1970 00:00:00 +0000

@FFB – Inflation stinks…at least it’s somewhat consistent in the US.

@Deb – “there are the returns to your esteem that occur when you can handle an emergency” Excellent point! When I talked about risk tolerance I should have brought this up. Thanks for your comment.

By: otherdeb (Deb Wunder)

otherdeb (Deb Wunder) — Thu, 01 Jan 1970 00:00:00 +0000

Great article! And I love the idea of changing your mindset to one that looks at saving as investing.

There is, however, one other aspect to this assertion: One of the things you are investing in is your well-being. Beyond the financial returns of saving, there are the returns to your esteem that occur when you can handle an emergency without having to be bailed out by a friend or relative.

And that aspect should govern your investing/saving behavior insofar as making the best choices you can make in terms of educating yourself about finances so you can use your critical thinking abilities to make the choices that will work bet for you in terms of saving/investing.

By: FFB

FFB — Thu, 01 Jan 1970 00:00:00 +0000

Granted, if you take inflation into account then savings accounts and many CD’s may break even at best. But still, for someone not accustomed to saving or is not yet comfortable with stock investing, this is a great way to look at things. Savings aren’t “only” savings. They are an investment!

By: PT

PT — Thu, 01 Jan 1970 00:00:00 +0000

Point taken. Cash is not king, nowadays. And I would definitely not suggest putting all your cash in cash. BUT, just because it’s a “poor” investment doesn’t mean it’s not an investment (imo).

It’s just a mindset change I’m getting at here. Treat your cash, and all your assets (things you own), with the same regard as your equities. If it’s not getting the return you want (not meeting your objectives), then dump it for another asset class.

There are no gaurantees with returns regardless of asset class.

By: Llama Money

Llama Money — Thu, 01 Jan 1970 00:00:00 +0000

Investing in the US dollar might be about the worst investment around today. Considering the real rate of inflation is far above the 3% ish that you’ll see on a high-yield saving account.. you are guaranteed to lose purchasing power.

Of course you need savings, but to see it as an investment? I don’t. If I’m guaranteed to lose money, then it’s not an investment ( to me ). It’s like people who call their cars investments.