Should You Be Saving or Investing Right Now?
We had a bull run for over nine years. The start of the pandemic was a buying opportunity. If you had bought back in March 2020, you would be sitting on a gold mine just a year ago. As time passed, things began changing. With uncertainty in the market, oil problems, and the coronavirus lingering, we have seen things get bad. The housing market and inflation are at an all-time high, and interest rates are dismal. With all that being said, is it a time to be saving or investing right now? Follow along to find out.
My Belief
What you should be doing right now is dependent on your mindset. I believe that you should be doing both. If you know anything about the history of the stock market, you know things will get better. We often see tumultuous times before cycling back around to everyone prospering. It is the continuous cycle that we have seen for decades. I think we all need to trust the process but still diversify by making some safe savings choices.
Should You Invest?
If you’re younger, the time to invest is now. Don’t think of it as losing money! Think of it as getting the socks you love at a discount. If you choose wisely and well in a few years, you will likely reap the benefits tenfold. I continuously invest in the market every week despite what the market is doing. I am down in every account, but I have time to recover. The only time I suggest curbing your contributions to the market or avoiding risk is if you are close to retirement age. If you are at that age, you don’t have time to recover in this market.
Should You Save?
If you don’t believe that the market is safe or want to diversify, savings are for you. Just like I invest on a set schedule every week, I do that for my savings account as well. I know that no matter what happens, my money will not be depleted by changes in the market. One thing I will say about savings is that you need to put them in a high-yield account. If it’s going to sit there, it might as well earn you a few dollars rather than pennies on the dollar.
For a different take on whether you should be saving or investing right now, check out the posted video above.
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