SAVING MONEY. . . means setting it
aside—deciding that you won’t spend it now
because you want to be able to use it in the
future. Saving part of the money you receive
is one of the most valuable habits you can
cultivate. Once you understand how important
it is to save money regularly (instead of
spending everything and maybe borrowing
more!), you may begin to save more money.
If you are able to save enough money, you
will be able to put some of these savings into
appropriate investments.
INVESTING MONEY. . . means putting it
to work to protect and increase its future
purchasing power. Simply setting money
aside and failing to invest it (putting it
“under the mattress”) will cause it to lose
value to inflation. This will not help you
reach your long-term goals.
Saving money is the surest path you can
follow if you want to minimize financial
problems, both today and in the future. Even
very small children can be taught not to
spend every penny as soon as they get it, and
to put some of their money in a piggy bank
so that it will be there when they want or
need it. “A penny saved is a penny earned”
is still a valuable lesson.