Wednesday, April 7, 2010

Jim Rogers on Saving

I came across some gems when flipping the Sunday Times.

"Everybody should save, especially early in their careers when they need to have reserves. My first wife wanted to buy a sofa but I told her not to do so because if we put that money for the sofa into investments, we could eventually buy 10 sofas." - Jim Rogers, investor

Good piece of advice about savings from Jim Rogers.

The problem with many people is that once they start working, they suddenly find this urge to spend their money on things that they have never been able to buy before. What they do is go out for some retail therapy. And instead of saving money first, they end up spending lots of money.

"Saving is something you should do to satisfy your liquidity needs. However, the main purpose of saving beyond your immediate liquidity needs is to generate higher returns for your future consumption." David Lee, managing director of Ferrell Asset Management.

Something for all of us to think about.

1 comment:

  1. Saving only helps you to embark on your journey. Where and how you end up in this journey will depend on your investing skills


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