WHEN TO SAVE vs INVEST - You Need To Do BOTH According To Your Financial Goals & Risk Tolerance!

[@stephandden]

Are you in saving or investing mode?! Let us know!🙂⬇️

[@amys7520]

Still building up my savings. Would like to keep a few months' worth of expenses in my savings account.

[@wulymammoth]

These two things aren’t mutually exclusive - liquidity seems to be the primary reason you guys point at without having stated it explicitly as to why you save. The safer investment vehicles are index funds with low fees and much lower volatility. With services in the US, like Betterment and Wealthfront, you can establish multiple funds for multiple purposes including the oh so important “emergency” fund. Very rarely does one need immediate or next day access to money. The liquidity isn’t quite as high as a standard checking or savings account, but 3-4 days isn’t bad and will work in the majority of situations without losing out on market gains. The part about saving for a house or real-estate which is usually a sizable chunk of of money loses out on significant gains even in a five year horizon if we’re talking about 7% year over year... I don’t think liquidity is a reason to “save”. I think it’s reasonable to keep some immediately accessible money around with high liquidity, but only up to a point...

[@Sustainagirl]

BOTH!

[@stephandden]

🥳

[@stephandden]

Absolutely not - we talked about how you can use both saving and investing in tandem. 😊 Agreed, definitely only up to a point! And after that point, invest away! 🙌🏾🙌🏻

[@MaryRalladi]

A good topic that reminds us of how important having a solid foundation is. Which is your savings. Investing is great! And I'm a huge believer that everyone should eventually get into it. But it's not a race. And the pressure "investors" put on you to make you feel like if you don't INVEST NOW, you'll remain broke for the rest of your life is not true. Take your time, pay off your debts, build an emergency fund (3-6months at minimum) THEN get into investing. I learned about investing, paid off my student loans, learned what my risk tolerance was, and built my emergency fund for 2-3 YEARS(If we include learning about personal finance then 5 years) before I got into ETF investing. And I'm glad I waited. Cause I can sleep well at night now regardless of the market :)

[@stephandden]

That’s awesome! You’re killing the financial plan 👏🏾👏🏻

[@taniasmiley8973]

Awesome advice! Thank you

[@odumfrancis2157]

Really happy that you guys are raising awareness about this topic. Lots more people need to hear this info.

[@stephandden]

Thank you! So glad you enjoyed 🙏🏾🙏🏻

[@theHoneyandAbsinthe]

I ask myself this ALL the time. It's so hard to balance when to save and when to invest. I think I tend to lean towards saving, but working on uping my risk tolerance!

[@stephandden]

Agreed! That’s awesome 👏🏾👏🏻

[@Sustainagirl]

This year I developed a spreadsheet with monthly tabs where I track all my expenses and income. In addition to that i have a yearly tab with my goals for each month and what I plan to make, spend, and save and invest. It's helped me so much to take one day a month to track everything and keep this top of mind.

[@stephandden]

Awesome! That’s a great idea ✨

[@DrLaraZib]

Thanks for sharing this - such an important topic to address at a young age! I've been in different modes throughout the last year or so!

[@stephandden]

Thank you! ✨

[@drej1934]

This was such a eye opener and can’t thank you two enough!

[@stephandden]

🙌🏾🙌🏻

[@PORKCHOPANTHONY]

Preach! 🗣🗣🗣! So smart to know when to save vs investing.

[@stephandden]

🥳🥳🥳

[@assalane]

I have a lot of trouble saving... I invest instead because this way I really can't touch the money. So many unexpected expenses are hitting rn... dad health problem, appliances that stop working, Car that breaks down... There is always something happening. Argh... so frustrating...

[@stephandden]

That makes sense - savings are more accessible and not great if you know you’ll spend it! So sorry that all of the unexpected expenses are hitting at once - hopefully it will slow down and give you a breather! Good luck 🙏🏾🙏🏻

[@Kailey-GLS]

So glad I found your channel- I’ve learned so much. Keep it up

[@stephandden]

Thanks, Kailey! 😊✨

[@YesToTech]

Absolutely adored this video! Super interesting and inspiring! A learned a ton! :)

[@stephandden]

Thank you! 😊

[@ashleynorthover5084]

Just found your channel - love it!

[@stephandden]

Thanks, Ashley! 😊

[@biancalouise388]

Just found your channel and I love this, thank you so much!

[@stephandden]

Thanks, Bianca! 😊✨

[@NatashaAnita14]

Great video! I've had friends give me slack for not investing but nice to know you guys also think a savings foundation is necessary :)

[@stephandden]

Thanks, Natasha! ✨

[@vibewithhealth]

Great video to get it structured on investment and savings!

[@stephandden]

Thank you! ✨

[@purplemartinilol]

This is exactly what I needed today :)

[@stephandden]

🥳🥳🥳

[@KO-ld8qy]

Love this! I’m learning so much from your guys

[@stephandden]

Yay! Thank you 😊✨

[@MissBobino]

Very informative video!

[@stephandden]

Thanks Claudia! ✨

[@charletfoster8917]

Great advice-especially during these times

[@stephandden]

Thank you! 😊

[@jordanwilliams9300]

Great video!

[@stephandden]

Thank you! ✨

[@marywolday1967]

what account should someone open to save money, there are a lot of choices and I'm confused

[@stephandden]

Hey Mary! You can use a High Interest Savings Account (we have a full video on our channel breaking them down, as well as one of EQ Bank, the one that we use to save!) 😊

[@marywolday1967]

​@@stephandden thank you , the video helped a lot thanks for your hard work

[@kevinbouliane]

Do you have any other videos on saving vs investing tradeoff? I've loosely budgeted it out, and I don't see myself being totally debt free (student debt) for at least a couple of years from now at my current income rate, but I find myself tempted toward investing small amounts like 5-10% in index funds, and then saving 45-50%. However in your video it seemed like you were encouraging folks to strictly save until 100% debt free. Could you elaborate on this (either in a comment or in another video)?

[@stephandden]

Hey Kevin! The order we personally follow is to save up a small emergency fund > pay off debt > save a fully funded emergency fund (enough money to cover approx 6 months of necessary expenses) > invest afterwards. It's definitely up to the individual if they're comfortable starting to invest while still paying off debt - if the return investing will be greater than the interest rate of your debt, then it's an option. 😊

[@vanguard7361]

Hey Steph & Den I really like your channel 🌷🌤️, have you two thought about starting your own botique consulting firm? 😊

[@stephandden]

Thank you so much, glad you're enjoying it! We haven't - I don't think that's the path we want to take 😊

[@TeandraPfeil]

This is very interesting! I've learned a lot. Thanks for sharing. #YT4B

[@stephandden]

Thanks for watching! ✨

[@ornela2]

I needed this video!!!

[@stephandden]

🙌🏾🙌🏻

[@Judah_Mafia_074]

If you are disciplined you don’t have to save money