One of the primary reasons people miss out on investment opportunities is due to a lack of means to invest. This can be attributed to an absence of savings or assets that can be liquidated for instant cash, like gold or silver. A lack of savings often leaves people unprepared for potential opportunities or financial emergencies. While we may not always see the immediate need for savings, it is important to recognize that they can be crucial in the long term.
Investors put their money into investments, hoping to save and double their money. However, unexpected emergencies may force us to sell our investments at a price that they wouldn't normally consider. This can be disastrous if the market isn't favorable. That's why it's important to have separate emergency funds to rely on in case of unexpected circumstances.
Using investment as saving is not bad but terrible
During the bearish season, all my favorite cryptocurrencies were in bloodshed, which means they were not doing well during that time, and they were very cheap. There was this particular one, ETH, which I have been eyeing for a long period. I could not purchase this token just because I didn't have any funds with me because I was using investment as a saving at that time. my investment was in Crypto, and it was not doing fine too, so I couldn't sell and this was how I missed out on that project. If I had extra cash I would have known where to direct my energy during that season.
Having emergency funds separately is crucial in preventing individuals from selling their investments at a lower price due to the necessity of needing funds urgently. It is not uncommon for people with terrible scenarios to be forced to sell off their investments at a cheap rate, without hesitation, just because they lack emergency funds. By setting aside funds for emergencies, individuals can avoid missing out on profitable opportunities in the future.
Chasing a good cause in a wrong way
Many people use their investments as savings because they believe that investing as much as possible can make a difference in the long run. However, unexpected emergencies can occur, making it risky to rely solely on investments. It is wise to have separate savings to ensure that our investments are not affected and to retain the value of our money when needed.
Using Investment as saving is a popular choice for many people due to the potential profit it can bring. While savings accounts that offer yearly dividends are available, people still go for using savings as an investment because investments often provide a higher return and they can't let go of the profit. It's important to make wise decisions when it comes to managing our finances to avoid losing money.
More from dwayne16
Instinct and knowledge the polar in making a financial decision
Greed: the unsatisfied hunger for money
Is it stupidity or manipulation
Analyzing the market is good for everyone in crypto.
Invest in what you understand.
Thanks for your time.
Posted Using InLeo Alpha
I did the same mistake and I was doing that since 2021, I deployed my own Crypto, wasn't sure how it'll go didn't get anything in return, wasted money there and recently I was involved in Crypto trading, don't know much about it lost my money here again,
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
It is a mistake but people tend to do that quite often. I think having a emergency fund is better and use that instead. The investments take time to play out and it sucks to pull that out while you are at a loss.