Mika
VIP Contributor
A lot of people believe that making more money will improve their finances. When they are able to make more money, they will have more spare money, which in turn will improve their finance.
While it is true that having more money will ultimately improve your finance, you also need to understand having a stack of cash will not improve your finance. Your cash needs to be used properly. With your money, you can do three things, one, spend, two, save, and three invest. Since we are talking about improving finance, we are not discussing spending. Now we have two options left, saving and investing.
Saving will help you but you will be in a better position if you invest. Saving means you earn little or no return on your money. Investment means you will receive profits on your investment. When you earn profits, and when you continue to earn profits from your investment, your finance will ultimately improve.
Well, there is a risk associated with an investment as not all investments can give you profits. However, there is something called diversifying your investment, which implies you invest in multiple assets. This will help you minimize your risks. The lower the risk, the better the chance of earning profits.
While it is true that having more money will ultimately improve your finance, you also need to understand having a stack of cash will not improve your finance. Your cash needs to be used properly. With your money, you can do three things, one, spend, two, save, and three invest. Since we are talking about improving finance, we are not discussing spending. Now we have two options left, saving and investing.
Saving will help you but you will be in a better position if you invest. Saving means you earn little or no return on your money. Investment means you will receive profits on your investment. When you earn profits, and when you continue to earn profits from your investment, your finance will ultimately improve.
Well, there is a risk associated with an investment as not all investments can give you profits. However, there is something called diversifying your investment, which implies you invest in multiple assets. This will help you minimize your risks. The lower the risk, the better the chance of earning profits.