Saving money is good no matter how you turn it. Eventhough it is even better if you know what you are saving for. It may be for an emergency fund, for a certain time in the year you are spending more money, for a car or a house.
When you have a certain reason why you are saving you are more determined to reach that goal and you put more effort towards your saving goal. If you haven’t been saving enough as you could have done start small, but important, with going for an emergency fund. Many people who suddently have to repair their car, end up ill or any other random circumstance happen to have to go borrow money. Borrowing money from friends, family or from institutions are never free. You may not be required to pay interest sometimes, but you are putting your friendship in danger.
If saving money is wrong, I don’t want to be right! – William Shatner
Once you have your emergency savings think what the next project will be that you will need money for. If your car has a certain age be prepared to repair it when needed or maybe even having to buy a new one. At this time you are better prepared to buy it completely in cash and avoid any debt if possible. After car savings you get to choose what is your next important expense. Will it be free time like travelling or are you putting money aside for starting to invest.
For some people investing is the holy grail, while others believe it to be no more respectable than gambling. My view on it is, you can either choose to spend your money as a consumer buying all kinds of things that seem neccesary and pleasant ,but actually are wasting you opportunities. Use your money to buy some things you want and save the rest for grabbing investing opportunities when they show up. But don’t be fooled, avoid the ‘get-rich-quick’ Schemes.
Learn a lot about investing while you are saving for later investments. Study how to lend money to companies that will pay you interest, look into dividend shares or growth stocks. When you feel ready for it start using small amounts of money into opportunities and strive for a better future.