1. Emergency Fund: Having a solid savings cushion ensures you're prepared for unexpected expenses or emergencies, preventing you from having to liquidate investments prematurely. 2. Risk Management: Investments carry inherent risks, and their value can fluctuate. By having savings, you're less likely to be forced to sell investments during market downturns. 3. Initial Capital: Many investment opportunities require a minimum amount to get started. Saving first allows you to accumulate the necessary funds to enter the market. 4. Time Horizon: Investing should be a long-term strategy. Saving beforehand lets you align your investment goals with your financial timeline and avoid needing to withdraw investments prematurely. 5. Research and Education: Taking the time to save allows you to research and educate yourself about different investment options, reducing the chances of making impulsive or uninformed decisions. In summary, saving money before investing provides financial security, flexibility, and the opportunity to make more informed investment choices.
