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Episode 03: Investing vs. Saving
Episode 03: Investing vs. Saving. Learn about them both, compare them side-by-side & find out which one is better!
CLICK THIS LINK FOR EVERYTHING HERE:
Transcript:
Hey, what's up, everybody? I'm Mike Germinario and it is my mission to show you how to build an indestructible, automatic, investing machine, working for you 24/7, so you can have the life you dream about.
By the end of this blog post you’re going to understand the difference between investing vs. saving. So first, let’s separate these two terms and define what each of them mean.
Let’s start with investing. What is investing? What does that mean? Investing is when you take your money and you buy some sort of asset because you expect that asset to go up in value. -OR- You expect that asset to hold its value and pay you an expected amount on a schedule. Let me explain with two quick examples.
Let’s say Tesla’s stock price is $1,000 but you expect it to go higher all the way to $2,000. You may decide to buy shares in Tesla as an investment for appreciation. Or let’s say that there’s a rental house for sale in your neighborhood that you expect will hold its value, but you’ll be getting rent checks every month from your tenants. You may decide to invest in the rental property for the income. In both examples you’re using your money to buy an asset. That’s investing!
Now let’s talk about saving. What is saving? What does that mean? Saving is when you take your money and park it somewhere, just for safe keeping. You don’t want to spend it, but you also don’t want it to grow. A common example is when you have your money sitting in a checking account or savings account at a bank. It’s there for safe keeping, but it’s not doing much of anything. Hey, how about when you were a kid and you used to put money into a piggybank. That’s a perfect example of saving money.
So now that we know what they mean, investing vs. saving, let’s compare the two side by side.
1. Your money has the potential to grow (also called appreciation) when you’re investing. Not saving.
2. Your money has the potential to earn regularly scheduled income when you’re investing. Not saving.
3. You can build generational wealth by consistently investing over time. Not saving.
Check the scoreboard. We have a clear winner. Investing is better than saving! To illustrate the point let me hit you with this…
In fitness terms investing is like working out, whereas saving is like watching TV.
In terms of having fun investing is like a day at the water park, whereas saving is like getting sprayed with a garden hose.
In car terms investing is like your dream car, whereas saving is like your first car.
I think you get the point. The bottom line is this. There are more savers than investors because that is all of our starting point. You have to walk before you can run. Saving is easy and comfortable, but all the growth is in investing. Until next time, never leave money on the table of life.
Follow Mike on Social Media:
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By Mike Germinario
5
22 ratings
Episode 03: Investing vs. Saving. Learn about them both, compare them side-by-side & find out which one is better!
CLICK THIS LINK FOR EVERYTHING HERE:
Transcript:
Hey, what's up, everybody? I'm Mike Germinario and it is my mission to show you how to build an indestructible, automatic, investing machine, working for you 24/7, so you can have the life you dream about.
By the end of this blog post you’re going to understand the difference between investing vs. saving. So first, let’s separate these two terms and define what each of them mean.
Let’s start with investing. What is investing? What does that mean? Investing is when you take your money and you buy some sort of asset because you expect that asset to go up in value. -OR- You expect that asset to hold its value and pay you an expected amount on a schedule. Let me explain with two quick examples.
Let’s say Tesla’s stock price is $1,000 but you expect it to go higher all the way to $2,000. You may decide to buy shares in Tesla as an investment for appreciation. Or let’s say that there’s a rental house for sale in your neighborhood that you expect will hold its value, but you’ll be getting rent checks every month from your tenants. You may decide to invest in the rental property for the income. In both examples you’re using your money to buy an asset. That’s investing!
Now let’s talk about saving. What is saving? What does that mean? Saving is when you take your money and park it somewhere, just for safe keeping. You don’t want to spend it, but you also don’t want it to grow. A common example is when you have your money sitting in a checking account or savings account at a bank. It’s there for safe keeping, but it’s not doing much of anything. Hey, how about when you were a kid and you used to put money into a piggybank. That’s a perfect example of saving money.
So now that we know what they mean, investing vs. saving, let’s compare the two side by side.
1. Your money has the potential to grow (also called appreciation) when you’re investing. Not saving.
2. Your money has the potential to earn regularly scheduled income when you’re investing. Not saving.
3. You can build generational wealth by consistently investing over time. Not saving.
Check the scoreboard. We have a clear winner. Investing is better than saving! To illustrate the point let me hit you with this…
In fitness terms investing is like working out, whereas saving is like watching TV.
In terms of having fun investing is like a day at the water park, whereas saving is like getting sprayed with a garden hose.
In car terms investing is like your dream car, whereas saving is like your first car.
I think you get the point. The bottom line is this. There are more savers than investors because that is all of our starting point. You have to walk before you can run. Saving is easy and comfortable, but all the growth is in investing. Until next time, never leave money on the table of life.
Follow Mike on Social Media:
YOUTUBE
Link to privacy, data, terms & disclaimer for all Mike Germinario Sites & Content