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Saving or Earning more?

Discussion in 'Traders Coffee Shop' started by shabbir, Nov 28, 2014.

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Saving or Earning?

  1. Saving

    3 vote(s)
    20.0%

  2. Earning

    12 vote(s)
    80.0%
  1. shabbir

    shabbir Administrator Staff Member

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    Saving is not the trick, earning more and wise investment is.

    So you believe in more savings or you are with earning more?
     
    shabbir, Nov 28, 2014
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  2. shabbir

    shabbir Administrator Staff Member

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    I am with earning more because you cannot just save too much if you are not earning much.
     
    shabbir, Nov 28, 2014
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  3. bhavesh393

    bhavesh393 Member

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    yearly incomes 15-20% saving
     
    bhavesh393, Nov 28, 2014
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  4. Suresh_Sinha

    Suresh_Sinha Active Member

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    I would disagree with you on this and will go with saving because if you don't save, you cannot invest.
     
    Suresh_Sinha, Nov 29, 2014
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  5. shabbir

    shabbir Administrator Staff Member

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    But then how much can you save?
     
    shabbir, Nov 29, 2014
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  6. Suresh_Sinha

    Suresh_Sinha Active Member

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    Whatever little we can save we can invest.
     
    Suresh_Sinha, Nov 29, 2014
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  7. shabbir

    shabbir Administrator Staff Member

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    But what if you can work on more income than focusing on saving little.
     
    shabbir, Nov 29, 2014
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  8. Suresh_Sinha

    Suresh_Sinha Active Member

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    Still if you earn more you have to keep saving and can't spend what you have earned.

    BTW desktop notification just help gets the conversation going really fast like a chat.
     
    Suresh_Sinha, Nov 29, 2014
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  9. shabbir

    shabbir Administrator Staff Member

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    But lets say you earn 10k per month and if you can focus on saving, you will just save 30% of it but if you can work on to earning 25k per month and keep your expense to roughly 10k, you can save a lot more.
     
    shabbir, Nov 29, 2014
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  10. Suresh_Sinha

    Suresh_Sinha Active Member

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    But still you are saving. Arent you?
     
    Suresh_Sinha, Nov 29, 2014
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  11. shabbir

    shabbir Administrator Staff Member

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    Yes but then we are not focusing on saving when income is too low and focus on earning more.
     
    shabbir, Nov 29, 2014
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  12. saptarshi_sachin

    saptarshi_sachin Responder

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    Earning is important, because at the first place if one doesn't earn, what will he save? First he needs some earnings and then he can think of saving. Investing is a diff agenda. A person puts his savings into investing is his own choice. So earning --> saving --> investing.
     
    saptarshi_sachin, Nov 29, 2014
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  13. ppdhamangaonkar

    ppdhamangaonkar New Member

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    Hey gd mng
    i agree with rishi
    first you have to earn ,then save & invest yr savings
    if you don't earn saving , investing does not arise
    but some times i feel , it is like asking which hand is more important , right or left ?
    So follow earn - save- invest cycle
    have a wonderful week end
    i am sure everyone must have earned in last six monthhs
    p p dhamangaonkar
     
    ppdhamangaonkar, Nov 29, 2014
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  14. shabbir

    shabbir Administrator Staff Member

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    Yes earned truck load of money in last 6 months :D
     
    shabbir, Nov 29, 2014
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  15. Suresh_Sinha

    Suresh_Sinha Active Member

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    But the question is not earning but more earning or saving.
     
    Suresh_Sinha, Nov 29, 2014
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  16. monilhathi

    monilhathi New Member

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    Given all things equal - i.e. if I compare 2 individuals earning about the same kind of money, the smarter one will save with knowing the effects of compounding benefitting him. So, practically speaking, even someone who is earning lower can save a much higher amount if he is smarter than the other one.

    On a seperate note, increasing income is always an endavour for most of us. Given the reality that you would not generally earn income from more than 2 sources, it is savings which will give you an increased passive income
     
    monilhathi, Nov 29, 2014
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  17. shabbir

    shabbir Administrator Staff Member

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    I am not a firm believer in passive income but what I believe is to earn more by working the same amount of time.

    So blogging many consider as passive income online and investment but then I prefer to earn few times more but doing that actively. Again that can be another debate but coming back to saving an investment.

    What if we focus on 2 individuals who starts earning 10k per month. First one started on saving 3k per month and second one could not.

    Now with 3k as saving he could start his investments and can be much better returns on his investments than the one who has not started 3k to begin with.

    The above scenario looks awesomely perfect but then is very different from practicality. You cannot save 3k when your salary is 10k. It becomes lot more difficult. Now think about the other scenario.

    As soon as he started his salary he did not focused on saving 3k but then he purchased a bike such that he can save on time he travels to his office and as he has more time for himself (assuming fresher will not have too much of pressure in job for few months) he can work on something else like freelancing or entrepreneurship or even just educating himself for something better technology.

    So he may not save money first but works on earning more and 5 years down the line, he could be earning lot more to not only save what that 3k person saved for 5 years in 1 year and make lot more money in the long run.

    So cumulative profit looks great but then always investing in ones education and trying to sharpen your skills can help you more than anything else.
     
    shabbir, Nov 30, 2014
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  18. ppdhamangaonkar

    ppdhamangaonkar New Member

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    Yes shabbir, i agree there is nothing like passive income
    you should have desire to earn , wisdom to save & courage & patience to invest
    savings= earning- spending , so wisdom come in picture
    investment needs courage , as sometimes outside factors affect returns
     
    ppdhamangaonkar, Nov 30, 2014
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  19. shabbir

    shabbir Administrator Staff Member

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    Very well said.
     
    shabbir, Nov 30, 2014
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  20. monilhathi

    monilhathi New Member

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    Thanks Shabbir for the clarification, I agree with your views as well!
     
    monilhathi, Dec 1, 2014
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