Four Reasons Why You Must Save to Invest Wisely

Four Reasons Why You Must Save to Invest Wisely

Welcome once again! I hope you are fine that is why you are here to read this. This is another opportunity for me to share something new with you. If you are a committed reader then let’s quickly have a recap of what I shared with you. Last time I shared with you the reason why investment is better than working. In that article I made you to
understand that investment places you in a position of authority. I also said that while the reward for working comes in the form of additions but however, the reward for investment comes in the form of multiplications. Moreover, while working moves in an arithmetic progression, investment on the other hand moves in the pattern of a

geometric progression. Most importantly I concluded by saying that “every problem has a formula and so if you apply the right formula you will get the right result.”

Today I am going to share with you four reasons why you must save to invest wisely. Now tighten your seat belt, take a cup of coffee and relax as we hit it right and on point. If you are in the right mood then let’s not waste much time. Let’s go then for the subject of discussion.

As a matter of fact there are numerous reasons why you must save to invest wisely. But for the sake of time and from my personal research and opinion I am going to summarize all the reasons in to three and so  I decided to tag the three reasons as 4R’s where the R’s are retrenchment, resignation, recession and retirement respectively. Believe it or not that wherever you are working today or wherever you are employed today you must eventually face retrenchment, resignation, recession or retirement someday. This four terms are inevitable as far the labour market is concerned and so you it is important that you are better equipped to face them  when they come knocking on your door. While retrenchment in most cases is unexpected and comes from your boss, resignation comes from you willingly or when you are compelled to do so by your superior in your place of work but retirement comes directly or indirectly as a result of an agreement between you and the government, company or organization you work for. No matter the atmosphere you work in  or no matter your level of experience and expertise in your job you will definitely face any of retrenchment, resignation, recession or retirement. These four factors are so crucial such that your ignorance of them can give you the greatest shock in your life time if you are not better equipped to tackle them when they surface. So preparing  for them early irrespective of how how skillful you are can help save your fortunes today, tomorrow and beyond. 

The first reason why you must save to invest wisely  is to avoid retrenchment. Retrenchment is a situation in which the government, company or organization you work for reduces her cost administration or production such that  you as a worker is forced to stop working. Retrenchment can as well come as a result of misconduct on the part of the worker. This is because every institution has rules and regulations that guide  the day to day administration of such institution. In that regard, if these guiding principles or rules and regulations are broken the government, company or organization has no other option than to relief you of your duties. Normally, before you are retrenched as a result of misconduct you must have been issued queries by your superior. Queries are meant to be constructive and not destructive since they are issued to place you as a worker on a balance i.e to correct  you so that you can be effective and efficient in your discharge of duties. If however you are unable to adjust positively after being issued queries your boss has no other option than to get you retrenched  ( fired or sacked, in a layman’s language). Simply put in another perspective, queries can be a bridge between your being promoted or demoted. On the other hand, commendations or recommendations, as the case may be, can be the springboard for your promotion at your place of work. Retrenchment can as well come as a result of  advancement in technology. It is undebatable that because of advancement in  technology so many people has been retrenched since  invention of a single machine can now do the work  that normally ten persons can do for a longer period of time for a very short period of  time. This is what inventions and advancement in technology can do i.e encouraging  retrenchment. As a case study, the invention of computers and counting machines has made the banking sector and other financial institutions to retrench a good number of their workers. This is usually done, beside other reasons , just to minimize their cost of financial service delivery. So if you as a worker who has worked or is still working without saving to invest you will be taken off balance financially if retrenchment sets in. But if however you are a worker who has worked or is working and saving to invest , when retrenchment knocks you will not be affected that much.

The second reason why you must save to invest wisely  is to prepare you for resignation. Although some people resign willingly others are forced to do so. To resign is means to voluntarily leave a job or position of office. So if you as a worker  willingly decide to resign or if you are forced to resign and meanwhile you have saved to invest or has already invested wisely, you will not be worried of where to fall back to since your intelligent invest can take care of your basic needs.

The third reason why you must save to invest wisely  is to prepare you against recession. Recession is a period of temporary economic decline during which trade and industrial activities are drastically reduced. We all are not unaware of the recent economic recession that swept across all economies of different countries. Even investment in bonds, shares and stocks (among others) were badly affected. So saving to invest wisely can cushion the effects of imminent economic recessions should they arise.

The last of the four reasons why you must save to invest wisely is to prepare you for retirement.  Retirement is the act of leaving one’s job and ceasing to work, typically on reaching the normal age of leaving service. Retirement as a term is inevitable and it is supported by the assertion of Physics that no machine is one hundred percent (100 %) efficient. Retirement age varies among different countries. If you as an individual who has reached the official age of retirement and you are honourably retired according  to due process you are bound to receive your retirement entitlements or retirement benefits in the form of pensions. Pensions are regular payments made by the state for people of or above the official retirement age and to some windows or disabled people. From another view, pensions are regular payments made during a person’s retirement from an investment fund to which that person has contributed during his or her working life.

In a nutshell, you must save to invest wisely for the four reasons (4R’s) stated above which are retrenchment, resignation, recession and retirement.

Food for Thought: “ Saving to invest wisely prepares you for the inevitables – retrenchment, resignation, recession or retirement”.