Monday, January 26, 2015
Make or Save?
Basic needs will be roughly the same for all of us regardless of background, education, intelligence or what have you. Once you have a balance between your expenses and your income, the focus begins to shifts to savings, the difference between the two. The more you can increase the gap between them the more you save.
Why save? Well, you could live paycheck to paycheck for the rest of your life. Some people do that. Some even enjoy it. For most of us, however, independence from the regular paycheck is either a dream or a goal. Savings can be invested and investments produce return, an income stream. With very little effort on your part, returns on investment can, over time, replace some or all of your paycheck. That's financial independence.