Tuesday, September 8, 2015

Why Everyone Needs An Investment Savings

Do you have a lot of ideas, but no money to turn them into realities? Enter investment savings.

What is an investment savings?

An investment savings is money you have predestined for investment opportunities. It's your seed money for the future. Hopefully, you already know how important savings is in wise money management, but that's not the savings I'm talking about. Regular savings can be for everything from taking a trip to preparing against emergencies. I call it “shelf money” because we tend to see our regular savings for something we store on the shelf until we need it.

Investment savings, however, has ONE purpose: investment. An investment is something that has lasting value or will enable you to earn more money in the future. The Proverbs 31 woman invested in land and vineyards and the first and second servants in Jesus' parable doubled their money through investing. An upgraded camera would be an investment for a photographer and same with a new heifer for the dairymaid.

Advantages of an Investment Savings

1. Forces You To Think Through Investments.

Some people get antsy when they have a lump of money with no plan for how to spend it. This often leads to impulsive spending and regret. With an investment savings you already have a general goal for that money, if not a specific one.

2. Balances Extremes.

When it comes to investments, people seem to come in two extremes: Gadget hounds and tightwads. Gadget hounds use $300.00 software to create customer invoices while the tightwads use quill and pokeberries. When you begin an investment savings and begin to keep records of where that money goes, you will have a reality check for how much -- or how little -- you are spending. This record shines the truth for the gadget hound's obtrusive spending and enlightens the tightwad to upgrade to an ink pen.

3. Encourages Saving Instead Credit.

For those who are not yet old enough for a credit card, you can't imagine how tempting it is to justify a loan for an investment. While many consider taking a loan for investment purposes to be wise and even necessary in today's economy, I believe patience and an investment savings can eliminate this need. I can't speak for every business venture nor is it my intention to lay down my personal conviction about credit as “Thus saith the LORD”. But I would highly encourage you to adopt a mindset of saving for your investments as opposed to relying on credit.

Steps of Action

First I would encourage you to pray about it. I'm wholeheartedly committed to saving for investments for two simple reasons: 1) God lead me to make it a priority and 2) I've experienced the benefits. If you are not convicted having an investment savings is best for you, you'll not have the strength to resist using it elsewhere or to stay committed. It takes a lot of discipline to say "no" to other wants, but you'll never experience the benefits of being able to say "yes" tomorrow if you don't say "no" today.

My second suggestion would be to set aside a percentage of every dollar you make to your investment savings. I started with 5%. It seems small, but you will be surprised how quickly it grows if you are consistent. This is also a very doable goal for the skimpiest budget. As the Lord blesses you, you can most certainly increase it, but don't despise a small beginning. Be obedient, be faithful and let God water the seeds.

2 comments:

  1. Great article! (I'll admit, the title was very catching)
    A good reminder to be a wise steward...thanks!

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  2. It was a good reminder for me too. Thanks for stopping by, Amanda!

    ReplyDelete