Maximize Student Investment Strategies
“The best way to predict the future is to invent it”---the unforgettable statement emphasized by the second speaker in his discussion on the importance of saving. As young students and future finance analysts, he encouraged us to save for future usage and benefit. However, as we grow older and smarter, we come to know the broad meaning of saving which does not only cover those in our piggy banks, but also saving in the bank/s. Though there is very little interest rate, still it is considered investing. Just as what Sir Bayot asked during his talk, “If you save money in the bank, are you investing?” And the undeniable answer was a flashy “Yes”.
However, there is still a better way to make money bigger and that is through investments. If saving will allow you to save for emergencies, investing will help you accumulate wealth for the future. You could invest for life insurance, educational funds, health funds or retirement funds. It doesn’t matter if you start out small f
or as long as you do it regularly, in time you’ll be surprised to know how much money you have grown.
I have also learned that there are three types of people’s behavior on money: a) Income less Expenses equals Savings is the type who spends his income and save only the residual; b) Expense less Income equals Debt is the type who borrows money even before earning his income resulting to d.e.b.t., which the speaker pointed out as “don’t ever be tempted (to borrow)”; and c) Save→Income→Expense is the type who saves a part of his income. Among these three types of behavior, the third one would best describe me. I have even formulated my own equation and that is Income (or Allowance, in my case) less Savings equals Expense. This equation is evident in my regular saving practice every time I receive my monthly allowance. I keep 20% of it and intend to spend the remaining 80%. However, most of th
e time, I do not consume all 80% and so it is left as savings. Just as what the speaker said that once you receive your first income, you better invest it for your future.
The question as to invest or not need not be answered, because the answer is as apparent as the benefits it would portray. Furthermore, aside from the planning and doing, it is also best to set at least one goal, like at the age of 50, I want to just retire from work and let money work for me, which will serve as your inspiration, and which you will stand by and fulfill.
