When Should Someone Focus On Building Savings vs. Investments?

Thomas-Brock-2-When should someone focus on building savings vs investments

In this video, Thomas Brock explains that saving should come before investing—by first building a budget, eliminating high-interest debt, and creating an emergency fund—so you can then focus on long-term wealth building and take advantage of compound interest over time.
Video Transcript

Saving and investing are related.

You need to get savings down before you can move into the investing realm.

You shouldn't start to think about investing until you've established a sound budget that you maintain.

You've eliminated all problematic debt, by that I mean credit cards, personal loans, things like that. And you've saved at least three to six months of expenses, the emergency fund if you will.

From that point you can start to think more long term, building wealth and planning for retirement.

The earlier you get started, the better because you'll be able to capitalize on the power of compound interest and it'll surprise you how much you can accumulate with time.