Episode 6: Savings
Saving and investing.
Both approaches go hand in hand in building wealth. But what’s the key difference between them?
Saving is within your control while investing may not be.
In this episode, let’s look at the underrated, less glamorous, yet powerful way of accumulating wealth – consistent saving.
- Managing your personal finances well may be more important than your ability to invest because the former is within your control
- Reducing needs is as impactful as increasing income, plus it’s more certain
- Wealth = income – expense. Your wealth is determined not just by how much you earn, but how much you save and spend too
About the series
What is money to you?
This exciting 7-part mini-series explores the way we think about our money. Because our relationship with our money affects every financial decision, big or small.
This includes how we save and spend – whether we pay in full or in instalments, chart our money growth, or even get that cup of bubble tea.
Interestingly, most of our decisions are driven not only by what we know, our intricate plans and calculations, but are keenly motivated by how we think and act – our moods, past experiences, interaction with external incentives, and a whole lot of other factors.
That’s why it’s so important to build the right money mindset to set you up for financial success.
About the speaker
Morgan Housel, an award-winning author of the book “The psychology of money”, is a financial writer, investor, and former columnist at The Motley Fool and The Wall Street Journal. He is currently a partner at Collaborative Fund, a venture capital company.
On the topic of saving, is it possible to save for things you can’t even imagine?
Watch the next episode to find out more.