The Best Investment You Can Make

As I mentioned before, when it comes to investments, saving money is usually the diamond in the rough that nobody recognizes. In fact, saving money is plain and simply the best investment you can make. It is, however, often difficult to convince others of this.

I did a search for “The best investment you can make” and got a return of over 78,000 matches. When I added “saving money” to the search, it dwindled down to 418 matches, and of those returned on the first page, none advocated that “saving money” was the best investment you can make.

While saving money may not be in vogue when it comes to an “investment strategy,” it comes with a number of qualities that most investments would love to have. Here are some of the reasons that saving money is the best investment you can make:

Low Risk: Saving money money is an extremely low risk investment to make. While it is possible to lose money while trying to save it, these instances are few and far between.

High (sometimes instant) Returns: If you gain 20% a year on a stock investment, it would be considered a banner year. You can get the same 20% return (and often more) instantly without any risk and with minimal effort several times a week when you use “saving money” as an investment strategy.

No Capital Gains or other taxes: The money that you save completely tax free — it isn’t subject to any taxes on the Federal, state or local level.

No Brokerage or other Fees: There are no broker or other fees that eat away at your return since you achieve the savings yourself. That means when you have a 20% return, the entire 20% goes to you.

Easy To Implement: A money saving strategy is easy to implement and doesn’t require extensive study. Basically, anyone can do it — even a child.

Where else can you find an investment with all those positives at such a low risk?

This entry was posted in Investing, Personal Finance, Saving Money. Bookmark the permalink.

2 Responses to The Best Investment You Can Make

  1. Ginsberg says:

    Excellent post; I’ve recently said the same thing in a post at my site [link]. Increasing your net worth by saving and by investing are two sides of the same coin.

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