The real key question should be, is there a reason for saving and investing? I was reading my typical read on CNN Money and Walter Updegrave the expert in money management talked about t he reasons to save and invest in general. My answer to this question is that I save and invest so that I could spend it later, so that I don’t have to worry so much about it when I am older, to have options in the future.

Have you thought about people that live paycheck to paycheck and don’t have anything saved? I have, and I know that they can’t take vacation because they can’t afford it. I mean they can’t afford no earn any money for 2 to 3 weeks, even though they may have a little bit saved.

One of the things that I picked from Walter Updegrave is the concept of delay gratification. Now a days people want everything and they want it “yesterday”. Delay gratification is the reason for saving and investing. Hence, there are three key benefits to saving and investing:

1. Having money = No worries. Basically if you have no debt you can probably sleep better at night. I know I would. You can have more freedom, and most important of all you learn to control your finances and grasp the concept of money management.
2. Having money gives you freedom and the power to follow your passions in life. You don’t have to work for a paycheck anymore. You’ll work doing things that you like or want. You can chase a dream or goal.
3. Money buys you time to enjoy with family and friends. You can build and develop stronger relationships when you have more time to do what you like. Some people think the social capital is worth more to them than the financial capital!

I know that we all Hispanics are family and friends oriented. We like to always be around many people and go to “fiestas y reunions.” I know I want more free time in my future. .. And that is a reason for saving and investing.

What do you think?

There you have it mi gente, the main reasons for saving and investing?

Tags: delay gratification, Hispanics invensting, Latino money, Latino savings

This entry was posted on July 10, 2008 at 8:51 pm and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed.